As soon as your ARM teaser rate term is up, in most cases it will go much higher than the fixed rate available now. If you lock in your rates now, it will help you save some extra money and will put you at ease with a fixed rate and fixed monthly payment, rather than an adjustable one.



If you are planning to sell your house because of the interest rate and term changes on your mortgage, you should still consider looking at the refinance option. As the housing market slips and it is likely that it will slow down further, it is difficult to sell your house quickly. There is a high probability that houses in your area are deflated in prices and you might have to sell it at a loss.