It’s amazing to find someone in a similar situation. I bought a rental single family detached home in early 2004 and also have a fixed 5 year at 3.75% and going to adjust in 2 years. For now I’m just staying with the 3.75% and gamble that I can still refi later. I should be able to refi because I’ve paid off the Heloc and only owe 75% of the original purchase price. We were also a single income family, but now my wife finished school and is also working. We are putting all of her income into CD’s (5%APR) until the loan resets, at which point we will make a ballon payment of another 25% off the original purchase. Your situation is different. You may want to refi your loan now while you can. If you are able to pay down your loan a lot, you should be able to refi in 2 years. If you have good credit and are able to owe less then the current/future value of your home, you will be fine.
