ARMs or adjustable-rate mortgages adjust periodically, either up or down according to changing market rates. That means even at a below-market start rate, it’s possible that your ARM interest rate could soon exceed the current rate. However, if you plan to remain in your home for a short time, an intermediate ARM, with a low introductory rate that remains fixed for several years before the first adjustment, may be best for you.
On the other hand, many homeowners with ARMs choose to refinance with fixed-rate loans to lock in a lower rate and reduce future interest rate risk. It depends on your individual situation.
We offer a wide range of mortgage options that can be tailored to a variety of needs. Ask for our free Refinance Worksheet, which can help you pinpoint the most suitable mortgage options, or even better, let us help you in person.