My 7-yr fixed resets next sept (2010), but should i refi now?

I would recommend taking action now! Don't wait until rates go up and it is too late. We have some of the best 7-year fixed rates in the country, currently as low as 3.5%!! We can have you approved in as little as 48 hours. Start your application at www.Rate1st.com or call me direct if you have any questions. Brock Hicks - 949-287-4058

That is a complicated question. If you live in your home now and you plan to keep it for a long time, you should refinance now at the low rates while you can get owner occupied rates. If you know that you will leave within 12 months, you should not get owner occupied rates but it sound slike that is up in the air..... If you wait, you not only risk higher rates from the market place but higher rates if you know your move out date (non_owner occupied rates)If you plan on keeping the house short term you might not want to refi at all. You want to look at your margin and your index from your note and see what the rate would become if it changes. People assume that the rate will go up but indexes are low so if you have a good margin you may be in great shape.I am happy to help more at hans@asktheloanman.com

You say that you want another 5/1 Arm because you are leaving within 5 years, should you still do it? The answer is YES! The biggest challenge that you may have is the numbers you mentioned. You say $560k first mortgage and rolling in the $95k 2nd and that makes even more senes to do it now if you are in a high balance market. I am in the San Francisco bay area and a lot of areas around here can go as high as $729,750 for a conforming loan amount so you would be OK there. We have also had depreciation so you8 would need enough equity to make that work. I am available at (866) 385-1650 or hans@hansblog.com