Anonymous wrote:My 30-year fixed rate is lower than that. I would refinance to a 30-year rate if I were you. You just never know.

+1

Most lenders will offer a credit that covers third party closing costs if you're cash-poor and don't mind a slightly higher interest rate. You can definitely do better than 3.75.

My 30-year fixed rate is lower than that. I would refinance to a 30-year rate if I were you. You just never know.

I'd refinance. You could refinance into a fixed rate at that interest rate, or possibly even lower. Go on Amerisave to see the rates versus closing costs.

We bought a new house last year and opted for a 10 year ARM at 3.75%. We did not foresee living here more than 10 years due to the good possibility DH's job would move us eventually, the 30 year mortgage was more than we wanted to spend, and we weren't sure we would want to be in the area we picked that long. Now it's a year later and DH's job no longer has the possibility of moving us, the area is really picking up and looks like will be a great investment, and we are pretty sure we will want to stay longer than the 10 years. Things are tight given we just bought this house and I wouldn't be thrilled to pay closing costs of refinancing at this point. We have no extra money to put toward the principle at this time but once we pay our cars off in a couple years, we will have more. What would you do?