Countrywide won’t help me refinance even with good credit. Shoud I refi into an interest only?
I have excellent credit (FICO 780), good job, and have little debt (mortgage, 1 car payment, 1 credit card).
About 16 months ago, I put 20% down and got a 6.25% interest rate on my current home. The house was brand new and the Builder paid the first property tax installment – which threw me off in terms of how much the property tax was going to be. Well, my monthly payment just went up by over $ 400 (I impound prop taxes and insurance).
Bottom line, I may relocate for more pay and may want to rent my house…..but I need to lower the monthly mortgage in order to rent it out without being in the negative.
Is it smart to refi my current loan (fixed 6.25% with no PMI) to an 80/20 or interest only loan? This would get my payments down as well as expedite the reassessment of my property taxes. That way I could possibly rent it for what the cost of the monthly payment would be?
Thanks for your help.
Thanks for the advice