BankerGirl

Posted by Heidi on March 25th, 2008 in debt

I financed my home purchase two years ago with a 5-year ARM at 5.8%.  It was a good deal at the time, and I figured that I wouldn’t be in the house for more than five years, so it made sense.

Two years in, it looks like we may stay put for a little while.  I just got a promotion at work, so I will likely be with my current employer for at least the next 18 months.   I have become enamored with living simply, and I don’t imagine that my partner and I will be reproducing any time soon, so we really don’t need a bigger house (upgrading to an acreage during this buyer’s market is kind of tempting, but I’m going to let common sense prevail for once in my life and stay in our little tudor for now).  This may be the ideal time to refinance and lock in a long-term rate.

I received an offer today from ING for a 30-year fixed mortgage at 5.2%.  I was thinking of maybe doing a 20-year term, but that rate is pretty tempting.  Is that as low as it will go?   

I have pretty good credit scores (729 Transunion, 780 Equifax), and my debt has decreased and income increased since I purchased the house, so I’m not worried about being approved for a loan.  Something else to consider - I bought the house on my own - if I were to refinance, I could add my fiancé to the mortgage as well.  I’m not convinced that’s a benefit, but if it is, I’d like to take advantage of it.

Is anyone else out there considering refinancing their mortgage?  I know that it’s impossible to try to time the market, but I welcome any tips - mortgage banking is not my specialty.

Stumble it!