Ask for a Truth in Lending on the various loans are programs you are looking at in order to for an compare the APR which is the interest plus certain costs like points or just ask the loan officers for the APR.... more
Your rates aren't bad at all as we are seeing general interest rates between 3 - 3.5% these days.
I would say: Instead of refinancing, if you can afford then pay off your second lien... as you may have to come up with a few grands anyways while refinancing, depending on the program you get.
I would definitely not recommend on refinancing your current residence as a primary and then rent it out later if you are thinking of moving out in near future. Basically, by paying off your 2nd lien you will have only one mortgage which your rental income can accommodate and you won't have to pay anything from your pocket towards this property once you upgrade.
Hope this information is helpful to you and that you make the right decision!!
Faiza Alvi - RealtorÂ®
Prince William Realty, Inc.
MILLION DOLLAR CLUB - PWAR 2011
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