Should I refinance my mortgage?

Question

The loan would be for about $140,000. I have the choice of 6.375% with no closing costs or 7% without closing costs. Closing cost are about $5000. I currently have a 5/1 ARM at 5.125% that is up in about 18 months. I plan on being in the home for about 5 more years. Thanks.

Answer 1

Rates will be going up in the short term (inflationary pressures will soon have the Fed step in to increase rates).

I would take the 6.375% and finance the closing costs (higher loan amount).

Best of luck!

Answer 2

Fixed rate: Take it and RUN. It may be at 5.125 now and in 18 months it could be 10.125 at the rate this mortgage mess is going.