Can I refinance into an ARM instead of a fixed rate?

Q: Can I refinance into a 25 year variable-rate mortgage in New Jersey instead of a fixed rate / fixed term loan?

A: Absolutely. There are no restrictions when it comes to selecting an ARM versus a fixed rate. However, you must be aware that while rates are ARMs can be eye-poppingly attractive, they will change in the future -- and are likely to rise, perhaps substantially. Don't think that you'll automatically be able to refinance out of your ARM -- that's a mistake that many sub-prime borrowers made, leading to the present market mess.

Ask the expert
Keith Gumbinger
Keith Gumbinger
Mortgage Expert
Vice President, HSH.com
About Keith: Mortgage market observer and analyst with 35 years experience... (more)
Please enter a question.
Please enter name.
Please enter email.
Captcha code invalid
Q: What is a mortgage insurance premium? Do I need this?
APR 07, 2022
A:

In general, this will be the cost you must pay for a policy which helps to protect your lender.

Read More
Q: Will biweekly mortgage payments save me money?
MAR 23, 2022
A:

Making biweekly mortgage payments will cut your interest cost and shorten the term of your loan.

Read More
Q: Is a reverse mortgage right for you?
FEB 14, 2022
A:

If you are considering a reverse mortgage (HECM), you should be sure you understand how these loans work and how one would fit in with your overall financial plan.

Read More
Add to Homescreen?
X
X
Install this web app on your phone :tap and then Add to homescreen