Re: 3 year arm mortgage anxiety
Zekat explained it a lot how I think about it.
You do get a lower interest rate. You don't have to refinance. My lender told me (could be different in states) that if you don't refinance, the rate can only go up ever 6 months and only like .5%, so your payment may go up $5. However, you need to check and see if your state has early payoff penalties or if they have regulations on a time limit you have to spend in your home before you can sell it. If you are not a first time buyer, these may not effect you.