Next year, you do not know any of the following with certainty:
a)What the value of your house will be
b)What interest rates will be
c)What your credit score will be
d)What your income situation will be
e)What loan you will qualify for at that time
You have had 4 years at a great low rate. You want to squeeze out one more year at that low rate. It’s your choice.
If rates are one half % higher next year, you will refi into that rate for 30 years, for the sake of your lower rate for one last year. If they are lower, you win.
Last summer, June ’07, conforming rates were about 1 full point higher than they are today. Rates are still very near historical lows. Many people have ARMS that are higher than 30 YR fixed rates today, and many people don’t have 30 YR fixed at below 6%.
Rates can go up or down quickly, nobody has a crystal ball.
ROLY, do you think that Countrywide is your only/best option ?
