So, based on that:
$365K at 6.125% full ammo = $2,219/mo
$365K at 6.625% int only = $2,015/mo

Extra interest/year on I/O loan = $1,825 = $152/mo. It's costing $152/mo (tax deductible) to save $204/mo net. I'd recommend paying the extra $204/mo to have the principal balance go down $356/mo, based on this rate difference.

This refi will be a 95% LTV / Last conversation was @$4500 total give or take a few hunj to do this deal. My FICO is 780 combined.

How are you getting a 95 LTV with no PMI unless there's a 15% second? And in that case, what's the rate on the second? Last I heard, those seconds were kinda hard to sell on the secondary market.

That's about right then for lender paid MI at 95% IO (LPMI, 6.625% w/ 0+0). A straight 95% IO w/ MI would be about .25% less on rate (maybe .375% depending on lender).

To answer the original question: This is always difficult and is just like trying to predict the stock market. The general trend (not Tuesday and Weds) has been down over the last month. Picking the bottom will be impossible, so I would say if it makes sense to refi right now, then do so. My GUESS is that as (if?) the economy sinks further into recession, long term rates could drop. However, if inflation (higher oil esp) takes hold rates will go up. So it is 50/50, which is why rates are where they are today, lol.

Good luck,

Jim

Hi Rick

The lender can pay the MI (LPMI), but it costs of course, whether by rate or points (or both).

Many thanks guys!

Lots of abbreviations in there...LI? PMI? LTV? WTF?