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I have a non-conforming 7 year interest only loan from Wells Fargo for $450,000. The fixed rate is 6.125 % during the 7 years. This is currently year #3 of my mortgage.
I bought my home 3 years ago for about $652,000. My credit score is over 800.
Should I pay down my loan to $417,000 so I qualify for conforming rates of 4.5 % or refi a non-conforming loan rate of 5.5% without paying down the $33,000.
I plan on living in my home for another 3 to 4 years and then I want to keep it as a rental afterwards.
Yes, simply because you plan on keeping it for at least 10 years. Otherwise, the fees and costs (including paying down the principle) won't be realized until yr. 10.