Refinance Loans
ARM Refinance
Lock in a fixed rate before your adjustable rate resets.
If your adjustable-rate mortgage is approaching its reset date — or has already adjusted to an uncomfortable level — refinancing into a fixed rate removes payment uncertainty and often lowers your monthly cost. You can also refinance into a fresh ARM if your time horizon is short.
Key Features
- • Lock in a fixed rate before ARM adjusts
- • Or refinance into a new 5/1, 7/1, or 10/1 ARM
- • Eliminate payment-shock risk
- • Standard conventional or jumbo refinance terms
- • No WA excise tax on refinance
How it works
An ARM refinance is just a regular refinance where the strategic choice is "do I want predictability or do I want the lower ARM rate?" If you're staying long-term, fixed wins. If you have a defined exit (job relocation, planned sale, expected windfall to pay off the loan), a new ARM can save real money. The underwriting is identical to any other refinance.
What this looks like in Washington
ARMs are popular in WA jumbo territory — Bellevue, Mercer Island, and Seattle's higher-end neighborhoods regularly see 7/1 and 10/1 ARMs because of the rate advantage on large loans. For tech workers with stock vest schedules, the math often works: take the ARM discount, refinance or pay off when the equity vests. For everyone else, fixed-rate refinances are the safer default — and after the 2022–2024 rate volatility, lots of borrowers learned the value of payment certainty the hard way.
Pros
- • Removes payment uncertainty
- • Often lower than current adjusted rate
- • Flexible terms (15/20/30)
- • Can refi into new ARM if exit is clear
Cons
- • Fixed rates typically above current ARM
- • Standard 2–3% closing costs
- • Resets loan term if 30-year chosen
- • Some old ARMs have prepayment penalties
Best for: WA homeowners 6–12 months out from an ARM adjustment, or anyone already feeling payment pain from an adjustment that's already occurred.
Common Questions
Related Loan Types
Popular WA markets for ARM Refinance
ARM refinances most common in high-value WA markets with strong refi cycles.