Should I refinance?

How do you have a $1772/month IO payment on $428,000? An IO payment on $428,000 at 6.125% for 30 years is $2180 and so is a 40 year term. If you actually had an IO payment for $428,000 for 30 years at 6.125% with a payment of $2180 and you refinanced to a fully amortized 30 year at 4.25%, you would have a payment of $2105.50 and accomplish what you are seeking. Check your numbers on your current payment and make sure what you have is not negative amortizing. You probably have an Option ARM and are paying less than the IO payment currently. If you have the equity, you will want to get out of this loan immediately.

Hello. You definitely have several options with a refinance. You could either refinance into a fixed rate or an ARM. But, since you are looking to pay down principal I am assuming that you are looking to stay in the loan long term. Either way, Freedom Mortgage is a Direct Lender and we fund loans in all 50 states. Please send me an email to adennie@fmbranch.com so that I may fully go over your options. Thank you.

1. Is not possible. At 4.375%/4.50%APR your payment P&I would be $2151.92/month.2. Also depends on what your property is worth as to whether or not you could refi if you wanted.3. If your Interest Only is coming due soon or it will go fully amortized soon, the YES refi now while rates low, BUT if not coming due for at least 18 months - hold off.Bill

You need to definetly check values Also, what county/state are you in? Some states limit coforming loans to 417k. Today is the day to look at refinancing, even if you decide not to, now is the time to explore options and make sure you are maximizing your current financial situation. A 15 minute phone call to a professional should answer all your questions.