Many homeowners can refinance into a lower-rate loan with no waiting period. And others need to wait as little as six months. So there’s a good chance you’re eligible to refinance at today’s low rates.

What is a 30-year adjustable rate mortgage?

A 3/1 adjustable-rate mortgage (ARM) is a 30-year mortgage product that carries a fixed interest rate for the first three years and a variable interest rate for the remaining 27 years. After the initial three-year fixed period, the interest rate resets every year.

How many years is an adjustable rate mortgage?

ARM loans are typically 30-year terms. Your starting rate may be lower for an ARM loan than a fixed-rate mortgage. Your monthly mortgage payment may be more affordable in the first few years of an ARM loan.

What is a 5’6 SOFR arm?

When a SOFR ARM has an initial rate lasting three years, followed by rate adjustments every six months, it’s called a 3/6 ARM. If the initial rate lasts five years, it’s a 5/6 ARM.

What are the benefits of an adjustable rate refinance?

Refinancing to an adjustable-rate mortgage (ARM) typically provides a lower interest rate for an initial payment period, making the initial monthly payments less than what a fixed-rate mortgage refinance usually offers.

When does an adjustable rate mortgage interest rate change?

An adjustable-rate mortgage (ARM) is a loan in which the interest rate may change periodically, usually based upon a pre-determined index. The ARM loan may include an initial fixed-rate period that is typically 3 to 10 years. The interest rate then may change (adjust) each year thereafter once the initial fixed period ends.

What do you need to know about an arm refinance?

Consider an ARM loan for an adjustable-rate refinance. What is an adjustable-rate mortgage (ARM) refinance loan? An adjustable-rate mortgage (ARM) is a loan in which the interest rate may change periodically, usually based upon a pre-determined index. The ARM loan may include an initial fixed-rate period that is typically 3 to 10 years.

When is the best time to refinance into a fixed rate mortgage?

The general rule of thumb is that refinancing to a fixed-rate loan makes the most sense when interest rates are low. While no one can predict whether rates will go up or down in the future, many homeowners are currently taking advantage of today’s low rates to refinance from their adjustable-rate mortgage…