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Old 08-02-2004, 02:50 PM   #3
Senior Veteran
Join Date: Apr 2004
Location: Oklahoma
Posts: 1,480
blue_eyed_girl HB User
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.