My close friend, Ben Bernanke, will probably be dropping interest rates for the next few months in an effort to try and keep the country out of a recession (don't you dare suggest that we are already in a recession or I'll be forced to defend Ben's stance).
I'll be keeping an eye on the interest rate and when it looks like it's been dropped as much as it's going to go, I'll refinance my house.
Remember, boys and girls, when I talk about refinancing, I'm talking about refinancing for the amount that I owe. I won't refinance and take the equity out of my house. I called that "the sinister refi" and that's completely different.
Unlike bigger cities in the US, houses here have continued to appreciate in value. What this means is that I will be able to lower my payments with the lower interest rate and I will probably be very close to being under the PMI limit.
We'll probably get a mortgage for 80% and a second loan for any amount over that. We'll put all the extra money toward the second loan which will be at a higher interest rate to get it paid off as quickly as possible.
This will free up more money on a monthly basis to deal with the possible rocky financial road that lays ahead of us.
That's the plan anyway.