In
addition to the obvious reason of saving money, you might want
to refinance for other reasons. For instance, you might want to
speed up equity accrual in the home more quickly (by converting
to a loan with a shorter term) in order to have that money
available down the road for a specific purpose such as
education, business, travel, home improvement or remodeling and
more.
You
may find an ARM with a lower interest rate, or with appealing
features such as payment caps that are lacking in your current
loan. If you can save 2 or 3 percentage points converting
to an ARM may well be worth your while.
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