Refinancing Rates and Options

If you're thinking about refinancing from an adjustable rate to a fixed rate mortgage, we'll help you understand the differences between these available refinancing rates and options.

Fixed rate mortgages

A fixed rate mortgage means your interest rate never increases, even if rates fluctuate. So refinancing from an adjustable rate mortgage (ARM) can make your monthly payments more affordable and stable.

Lenders usually offer fixed rate mortgages for 10, 15 and 30 years. The longer your loan term, the lower your monthly payment will be. A shorter loan term may increase your payment but you could pay off your home faster.

Fixed rate mortgages are the most popular choice for homeowners, especially those who plan to stay in their home for many years.

Refinancing with a fixed rate mortgage locks in your rate so it can make budgeting easier.

Adjustable Rate Mortgages (ARMs)

An Adjustable Rate Mortgage (ARM) has a lower, fixed interest rate for a set initial time period then adjusts to financial market rates for the rest of the loan term. That means your monthly payment can be lower at first but may increase if mortgage interest rates go up.

The most common ARM types are often advertised as 3/1 or 5/1 ARMs. The first number shows how long the fixed interest-rate period will be. The second number shows how often the rate will adjust after the initial period. For example, a 5/1 ARM is fixed for the first 5 years then adjusts every year afterward.

Looking for more home refinance options?

In addition to the refinancing types above, we can help with other options, such as Jumbo loans, that may be a good fit for your situation.

Learn about additional refinancing options

Learn about the Home Affordable Refinance Program (HARP)

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