Many people opt for an Adjustable Rate Mortgage, or ARM. Typically, these types of mortgages offer a low, initial rate that adjusts to market conditions after a specified period. Many borrowers are attracted to ARMs, because their low initial rates can make home ownership more affordable.

If you have an ARM, and you’re concerned about potential interest rate changes that will increase your monthly payment, it may make sense to refinance.

So how do you decide if it’s time? There are a number of factors you should consider. For example, how long do you plan on staying in your home? If you have an ARM that’s fixed for 5 years, and you plan on moving before then, there’s really no need to refinance. If, however, you’re planning on staying beyond the 5-year time frame, then you might want to consider refinancing and getting a fixed-rate mortgage. Norcom offers 15, 20 and 30-year fixed rate mortgages. Your Norcom specialist can help you decide which mortgage product might be right for you.

If your down payment was less than 20% when you purchased your home, then you most likely were required to get mortgage insurance. If you now have more than 20% in equity, however – built up through the payments you’ve made and/or an increase in your home’s value – you may no longer require mortgage insurance. If that’s the case, refinancing could be a good way to eliminate this cost and lower your monthly payments. Again, your Norcom mortgage specialist can help you look at whether this option is right for you.