I have a five year fixed mortgage (5%) that...

[mshep]

...will adjust in 2010, when should i think of refinancing?

[italsteel1]

A 5% interest rate is an excellent rate...I am assuming it is a negative amortization loan with that kind of rate. If is is not neg am. dont refinance. You still have a couple of years to get it done. I would start the refinance process amount 6 month into the 2009 year. If it is negative am loan....aka option arm loan...refinance now, because if you are only paying a portion of the interest only on the loan the remaining portion will become principal.

[Adela M]

i'm not sure, but i think this site has the answer to this particular question. they've got lots of stuff about this anyway.

[lnebacker1]

I would say that you should look into a refinance closer to the time that your rate will adjust, and you can assess how the rates are at that time. Also, check out if your loan has a prepayment penalty. This may dictate when you can actually refinance without a penalty.