Have Interest Only -- Should I Refinance to 30 year Fixed?

 My wife and I refinanced our house back in Feb (2005)to an interest
only loan.  At the time we only planned to stay in the house for 1 - 3
years.  Now we think we may be there longer and are questioning the
wisdom of going with an interest only loan.  So, my questions are:  1.
would it damage our credit to refinance again so soon?  2.  would the
extremely short time we've had the mortgage (5 months) make lenders
hesitant to do business with us?  

Thanks in advance!

 

 Thanks for the response, Charles.

 
Probably not a problem to refi, but you can avoid the paperwork hassell
and closing costs by just figuring out how much extra you can afford to
put toward the house without straining financially and add that much to
each payment as payment toward the principal unless the loan docs forbid
this (unlikely but possible).

I would suggest calculating the mortgage payments and keeping close
track of it yourself to avoid the bank screwing it up.

--
Rich Greenberg Marietta, GA, USA richgr atsign panix.com    + 1 770 321 6507
Eastern time.  N6LRT  I speak for myself & my dogs only.   VM'er since CP-67
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Rich Greenberg wrote:

I'd agree with this advice, unless you have an interest only ARM and
the adjustable part is the main reason you want to go fixed rate.

While we're on the subject, I got a dumb question.  If you add
principle to an interest only payment, are your future mortgage bills
reduced to reflect this?  Or does the amount required stay the same but
a small part is now principle?