I have a similar situation. I have 3/1 ARM with current interest rate 3.875%, but will get adjuested this Novemeber (max 2% more, so up to 5.875% from Nov 2007 ~ Nov 2008). I am thinking to buy a townhouse in North CA, and rent out the one in San Diego (just thinking and planning). Should I refi to 30 yr fix for my SD house now? The pro is I don’t need to worry about it any more even I may rent it out later. The con is I loss several month of low interest.
