If you missed the 30 year fixed rates in the 3’s, you may want to consider a 10/1 Arm or a 15 year fixed mortgage refinance. The current 10/1 Arm and 15 year fixed rates are both still in the high 3’s, and would allow for tremendous interest savings vs. the current 30 year fixed rates.

I like the 10/1 Arm (with a 30 year amortization) as, historically, most folks are only in their loan (not their home) for 5-7 years. The 10/1 Arm gives you 10 years at a guaranteed fixed rate before it switches to a 1 year adjustable.

The interest savings on a $250,000 loan over 10 years would be aprox. $18,000 (3.75% APR vs. 4.75% APR). Even if you were in the home for 12 years, and the rate on the 1 year Arm went to it’s highest adjustment, you would still save money. Also, the 10/1 Arm is good for both conventional and jumbo loans up to $750,000!