Would it be smart to refinance my house now?

Deangelo
My husband and I bought our house in April of '06 with a 3 year fixed then adjustable rate mortgage. It was always in our plan to refinance for a 30 fixed rate mortgage. We had planned to wait until next September because I will have completed my master's degree and our debt-to-income ratio wouldn't look so bad. Right now, we're pretty tapped out. But, with the housing market like it is, we're worried that if we don't refinance now, we'll end up with a huge interest rate. Any advice?

Kacie
If your interest rate where you are now has dropped, it would be a good idea to refinance now. It may go up again, and you may regret waiting then.

Hermina
Interest rate is one thing, if the property value drops it may hurt more than help. Just have someone run the numbers for you today, it may work out for you.

Reyes
The simplest and lest expensive way to refinace the loan you are in into a 30 year fixed is to call lyour current lender and ask about a "Streamline" Fannie Mae refinance.There is no appraisal required and no re-qualifying. The minimal costs can be built into the loan and it happens fast too.Take advantage of today's low interest rates.

Brittni
Getting a huge interest rate isn't really the pressing issue. Rates are not going to jump from their low 6's right now, to 11-12 overnight.Your concern needs to be that as more properties are foreclosed on...your value is slipping. If your value falls too low for the new qualifying guidelines for lenders, you will not be able to refinance. Qualifying is tighter than in '06 especially if you purchase on a jumbo loan (<417K).If you bought in 06 the market was likely higher. If you bought with 100% financing you may be upside down in your loan already. You need to know what your interest rate will be once adjusted, how often it will adjust, what index it is based on etc.You need to know what your home value is and if you can carry that new payment (which will change...it wont adjust and then stay it will adjust...and adjust etc.) Can you finish your masters in the evenings...or days and get a part time job...think outside the box.If you don't have the income or the value you may be stuck with that adjusted loan. It will likely be higher than what you could get a fixed at but if you don't have the income right now, you may not have many options.Obviously would need more info to give you specific options but rates are not you problem, its value slippage, current value and your ability to qualify for a refi on current income.OBA™