ARM to Fixed-rate Refinance
After an initial fixed-rate period, Adjustable Rate Mortgage (ARM) loans rise and fall with changing economic conditions. Because of this, the rate on your mortgage is at risk of rising.
ARM loans are best suited for temporary living situations. However, because life changes do occur, your plans to sell and move to another house may be set back. If you are now staying in your current house longer than initially planned or have decided not to sell, refinancing into a fixed-rate mortgage will protect you and your family from the risk of rising payments.
Before making the switch, it is important to make sure current housing market conditions and your credit score provide you with an option that is financially better than your present ARM loan.