From January to March, 89 percent of homeowners who refinanced their one-year ARMs, or loans on which rates remain constant for the first 12 months, switched to fixed-rate mortgages, according to data released by Freddie Mac, in May.
During the same time period, 84% of those holding 5-7 year adjustable-rate mortgage loans switched to fixed-rate mortgage loans, according to the government.
That’s what everyone should do, right?
Get out of risky loans, into safer, steadier loans.
If they can.
If your home is worth less now than when you bought it, or what you owe on it, there’s little to no chance you’ll find a bank willing to loan you the money.