Question by Claudio F: Is it going to be harder to refinance one year from now?
Our balloon mortgage is due to expire in 2 years and we have to refinance before the expiration.
Is it going to be harder to refinance if they don’t pass the bailout plan?
Answer by Landlord
The bailout is going to raise rates, not lower them.
No one knows the future, but I would expect it to get harder, both in requirements and in higher interest rates.
I would refi now, your loan was never meant to mature, it is for short term investing only.
Add your own answer in the comments!
Most balloon mortgages do not expire. They are extended for the remaining 28 years at .5% above the going rate. So if rates are 5% in 2 years, you will pay 5.5%.
Keep your mortgage. It is fine..