It’s important to consider what mortgage rates are doing. Are mortgage rates rising or falling? If you have an adjustable rate mortgage (ARM), it may adjust to a rate that’s higher than a fixed-rate mortgage. Now might be a good time to consider refinancing to a fixed-rate loan.
However, you must also consider the amount of time you plan on being in your home. If you’re only going to be in your home for a few more years, it may make sense not to refinance out of your ARM. If you’re going to be in your home for longer than seven years, it might be a smart move to refinance to a fixed-rate mortgage.