Many Nations Lending clients purchased or refinanced their homes in the past with intermediate adjustable rate mortgages, or intermediate ARMs, which have a period where the rate is fixed and then enter a period where the rate adjusts, usually annually. For example, if you have a 5/1 ARM the rate is fixed for five years and then adjusts annually for the remaining 25 years. A 3/1 is fixed for three years, and so on. if you have an intermediate ARM on your property and are approaching the end of the fixed rate period, a viable question arises; should you retain the ARM or refinance to a fixed rate mortgage through Nations Lending? Our Nations Lending loan officers will tell clients that the answer to the question differs depending on individual circumstances and comfort levels of risk. There are a few factors to consider when deciding if you should refinance from your current ARM mortgage or stick with it. What is your loan balance? What is the current fixed interest rate on the loan? What is the index and margin on the mortgage that will take effect when it becomes adjustable? Realistically, how long do you think you will remain in the property? Fortunately, many of Nations Lending’s borrowers have seen their home appreciate, so there is equity. Although rates have gone up versus a year ago, by historical standards they are still low, and we are seeing many clients lock in the security of a fixed rate. Our loan officers will help you answer these questions, at which point Nations Lending can help you determine if it makes sense for you to refinance or retain your current mortgage. With recent dip in rates, many homeowners can refinance to lower rates compared to what the rate will be on the intermediate ARM after the initial adjustment.