Question 1

Should I refinance my ARM before it adjusts?

Accepted Answer

If you plan to stay in the home long-term, locking into a fixed rate before your ARM adjusts is usually a smart move. If rates have dropped since you got your ARM, you could save significantly.

Question 2

How early should I refinance my ARM?

Accepted Answer

Most borrowers refinance 6–12 months before their first adjustment, especially if rates have dropped. Don't wait until your payment shocks you.

Question 3

Can I refinance into a new ARM?

Accepted Answer

Yes — if rates have dropped enough, refinancing into a fresh 5/1, 7/1, or 10/1 ARM can give you another long fixed period at a lower rate.

Question 4

Does refinancing my ARM reset the loan term?

Accepted Answer

It can. You can refinance into a new 30-year, a 15-year, or even a custom term. We'll model the trade-offs.

Question 5

Are there prepayment penalties on ARMs?

Accepted Answer

Most modern ARMs have no prepayment penalty. Older or non-QM ARMs sometimes do — we'll check your current loan before recommending anything.

Question 6

How much does it cost to refinance an ARM?

Accepted Answer

Same as any conventional refinance — typically 2–3% of loan amount in closing costs. Often recouped in 1–2 years through monthly savings.

Question 7

What if my ARM has already adjusted?

Accepted Answer

Refinancing can still make sense — especially if you're now paying significantly more than market fixed rates. Run the numbers with me.

ARM Refinance

Key Features

Common Questions

Related Loan Types

Ready to move forward?