If you are 2 yrs into a 5/6 Interest Only Mortgage is it best to refi to a traditional now or wait to the end?
I am a first time homeowner and my primary homeloan is an Interest-Only 5/6 LIBOR ARM. It was explained to me
by both my real estate agent and the mortgage guy as a wise thing to do given that the Atlanta housing market
is ‘always strong’ and if you think you ‘might move within 5-7 years’. There was (and still is) a chance I may
need to move within that timeframe and it’s true Atlanta has been a hot market for quite some time(until now). So I decided
to go with it eventhough I wasn’t quite comfortable with the idea, but I wrote that off to first time home buying jitters and trusted the ‘experts’ I had.
So, I am wondering if you have this type of loan, what is the best way to protect yourself? Should I refinance to a 30 or 15 yr fixed rate? And if so, is it a situation of the sooner, the better or should I hang on until I near the end of the 5 year period? I am 2 years into my 5/6, so I have time before it begins its potential jump. My job is stable.
I have an interest only mortgage loan with a 6 month libor so I knwo the libor can go up and down…..does anyone know if it is suppsoed to move up or down soon?