Taken from the linked article:

"If you are considering a refinance from an ARM to a fixed-rate loan, first ask yourself how long you see yourself staying in the home. It could be very worthwhile to take all the fees you would pay for a refinance and pay down your present principal. If you have credit issues that need to work out to avoid paying higher fees, it might be worth staying put until your credit is repaired."

Do you see yourself staying in your house for a long time? If not, then it might not make sense to refinance to a fixed rate.

Also, be aware that even on an interest only adjustable rate mortgage, you can still make extra payments towards the principal each month. Making regular payments to chip away at this principal in the ARM might be more wise to do rather than refinancing and being subject to fees and penalties.
Source(s):
http://www.akron.com/akron-ohio-real-estate.asp?aID=5152

Asker's Rating:

Permalink | Report