When should I refinance my mortgage if my fixed period expires and my rate will probably adjust up?


Well, "When should I refinance?" is a common question for people who are intimidated by a possible raise of the monthly mortgage payment after a teaser introductory ARM rate.

However, even if you want to refinance your ARM mortgage now, right before the fixed term expires, you probably cannot. The lender who sold you the teaser rate ARM is very likely to have slipped in provisions so that you are unable to refinance out without paying heavy penalty fees making the refinance difficult and even impossible.

In order to find the right moment to refinance your mortgage and get a new fixed rate mortgage with nice rate and predictable monthly payments, even if you are not stuck with an ARM with heavy prepayment penalties, you have to collect good faith estimates and run comparisons on how closing costs and new rates will finally affect your costs in the long run.

Mortgage rates hit their lowest since 1955. Ask the home loan experts we recommend Quicken Loans how to take advantage of them.
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