I have a 10-year ARM* that I’m 3 years in to. At the beginning of this year, it was my plan to refinance in 2009 so I can settle into a 30-year-fixed. Everything has gone as planned and I will be ready to refinance next year.
But, if you haven’t noticed, there’s an awful lot of turmoil in the mortgage industry lately. I have no idea if this means it is a great time for me to refinance or a horrible time.
I have a great credit score (close to 800…I haven’t checked recently), an impeccable credit history and have never missed one payment on my mortgage in 3 years. I will have plenty of income to cover the higher monthly payments that will come with the new mortgage - in fact, I’ve been paying extra for a year now just to prove I can do it.
My mortgage company, Countrywide, was recently bought out by BoA. So far I haven’t noticed any changes. I’d like to stay with them as I think I end up saving on some closing costs if I do, and I haven’t had any bad experiences with them so far.
What are The Analysts saying about what I should do? I’ve got 7 more years to “wait it out” if need be but I’d like to get into a 30-year fixed sooner than later just for the peace of mind and to stay on track with my financial goals.
*Please do not make this a discussion about what a moron I am for getting an ARM. Not all ARMs are a bad deal. I have handled mine perfectly fine and am not an idiot for having gotten one.