So we closed on our mortgage in early February of this year, just as rates spiked a bit and got in at 3.375% for a 15 year conventional 20% down 88k loan amount on a 110k sale. The home was appraised at the time for 115k, and we have since made some improvements so I would imagine the value is at least a little bit higher.
The same lender is now doing 2.75% for 15 year and 3.375 for 30 year. We are looking to buy our long term home in about 2 years. I was thinking about either locking in a lower rate now for the 15 year, and possibly getting a little bit of cash out by refinancing to 80% of the appraised value or going with a new 30 year in order to lower our payments when we go for our next mortgage. It's a two family house, the rental income from one side would cover all expenses if we did a 30 year loan. This would help us build our down payment a bit faster as well!
So. Is it too early to refi after just 6 months or so? Do lenders (small local CU who is holding the loan) perhaps let you refi to a 30-year without going through the whole appraisal/closing process again, or is that crazy talk?
Either way, I would love to get in on these even lower rates. Another factor to consider is that after we buy our next house, we will likely transfer this house into an LLC. I have not looked into that process at all yet and i'm not sure how that would impact my planning right now.
Any advice?
Would I be looking at the few thousand in closing and other expenses regardless? In that case, it would be tough to justify the refi, even with the lower rate, on such a small loan. However going to a 30-year and freeing up some cash would be nice!
Thanks
