“The question I keep tossing around in my head is – should
I refinance now to a 30 year fixed? Or hold off until next year and see how everything is possibly locking in a lower rate? And who knows what an election year/bailout/who knows scenario may unfold.””
The thing I have been most wrong about in my expectations related to the market is interest rates.We ahve ahd very good rates for many years now. I thought they would have pushed significantly higher by now. It seems like it is not a matter or if but when. All this modification and freeze stuff could be causing a temporary delay in the inevitable. I think it would be hard to let current market rates go up while they are freezing and modifying in downward fashion, terms of existing notes in a very non-free market manner.I think there would be a pretty big backlash against that.
I have read FormerSanDiegans post and agree you should really crunch the numbers on your possible interest expenses with your current note terms. Fixed mortgage money is near historical lows now, so all theories aside, if you are going to refi-in the next couple of years, and plan on keeping the property indefinitely, I would not see it worth the the gamble of putting it into the future if the numbers crunch in favor of a refinance now.