Q&A with Ric: Up in ARMs Whether or Not to Refinance

Ric Endelman
Ric Endelman

By Ric Edelman

Question:My husband and I currently are in the 2nd year of our 5 year ARM mortgage. We are considering refinancing to a fixed mortgage due to low rates. However, we are unsure if that is a good idea since we have 3 years on the ARM. In that time we could sell the house to pay off debts. Should we refinance to a fixed rate now increasing our loan amt another $6000.00 or stay the course and sell later? We are in a competitive market in Lacey, Wa with a lot of new homes for sale and selling our 38 year old home may be difficult. Tell me your thoughts. --Carolyn

Answer: If you plan to sell the house before the rate adjusts, there is no need to refinance.