I guess my main concern is that interest rates might climb back up
drastically in a couple years. I guess if we're moving anyway, it
doesn't really matter. I just don't want to move and get stuck with an
8% rate or something. I'd rather stay until rates went back down. I
guess the answer is, no one can tell the future, just live for today
and move whenever the time is right.

In article <1105498066.983780.205360[at]f14g2000cwb.googlegroups.com> ,
russ[at]russ.net wrote:

- quote -

I cannot figure out why you are worried. You have 2 years left
on the 5 year fixed part of the loan, and you are moving in
1 to 3 years. That means that you will have one rate adjustment
at most. Most of these loans have some type of maximum amount
that they can adjust by each year. It is normally 2%. So, the
worst case is that you pay an extra 2% for 1 year. Big deal.
And you can write it off, so you even get a bit of a rebate on
it from Uncle Sam. I certainly would not pay for a new loan
and closing costs to avoid the 1 in 3 risk of having to pay
up to 2%.

-john-

--
================================================== ====================
John A. Weeks III 952-432-2708 john[at]johnweeks.com
Newave Communications http://www.johnweeks.com
================================================== ====================

We refinanced our home 3 years ago and opted for a 5/1 year ARM since
we figured we'd want to move in 5 years. We're just now getting the
loan amount back to what it was before rolling the fees/points into the
loan to refinance, and I'm worried doing a 5 year ARM wasn't the best
choice.

We want to move in about 1-3 years into a new home.

My options are:

1- Stick with our current 5 year ARM and hope interest rates don't go
up too much in the next two years before we move.

2- Refinance again, but this time lock into a 15 or 30 year loan, even
though we're moving in 1-3 years.

3- Try to move sooner than later, while interest rates are still low.

I know there's a lot of questions unanswered, but what would tend to be
the best bet financially?

We owe 106,000 on our 109,000 loan and our home is worth ~ 130,000. We
have no other debt besides the home loan.

Thanks