Refinance ARM to a Fixed Rate?
Dave coaches a caller on what to do about refinancing to a fixed rate from an ARM.
ANSWER: If you refinance to the fixed rate, you’ll have to write a $2,400 check to avoid the risk that your payments could change. This would allow you to lock into an interest rate which is at or near a 40-year low. You should absolutely write the check or roll the $2,400 into the closing costs when you refinance.