Start from what you want to change, then find the refinance that fits
Goal: a predictable rate
Straight answer
Refinancing an adjustable-rate loan into a fixed-rate loan trades possible future rate drops for a payment that will not change for principal and interest. It tends to appeal when the first adjustment is approaching or when you plan to stay a long time. Check your adjustment date and caps so you know what you are avoiding.
Last reviewed against the primary sources listed below.
Find in your documents
- The next adjustment date.
- The caps on each adjustment and over the life of the loan.
- Any prepayment penalty.
People also wonder
When should I refinance my ARM?
Many owners start shopping several months before the first adjustment so they have time to close.