We live in a condo that we plan to stay in for another 4-5 years. Because we know that this is not our forever home, we have a 30 year mortgage at 4.125%.
For some reason I thought rates had dropped a bit, but they haven't really. However, when I was checking refi rates, I see 7/1 ARMs for around 3.125%, with closing costs of around $2k. A break even calculator tells me we'd break even in 21 months and after that we'd be saving money.
Is this even remotely worth thinking about? I'm only interested because of the interest savings, and we'd only accrue 2-3 years of savings before we plan on selling. The risk I see is if the housing market collapses for some reason and we choose to keep the property, we have to deal with the rate adjusting or refi-ing again.