Question by mshep: I have a five year fixed mortgage (5%) that will adjust in 2010, when should i think of refinancing?
Answer by italsteel1
A 5% interest rate is an excellent rate…I am assuming it is a negative amortization loan with that kind of rate. If is is not neg am. dont refinance. You still have a couple of years to get it done. I would start the refinance process amount 6 month into the 2009 year. If it is negative am loan….aka option arm loan…refinance now, because if you are only paying a portion of the interest only on the loan the remaining portion will become principal.
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