How adjustable-rate mortgages really move
Conversion options
In brief
Some ARMs include a conversion option that lets you switch to a fixed rate during a set window, usually for a fee. The fixed rate is set by a formula in your note. Check whether your loan has this feature and compare the conversion cost with a refinance.
Last reviewed against the primary sources listed below.
Find it in
- Your note and ARM rider.
- The ARM program disclosure.
- Your servicer's answer in writing.
ARM questions
Can I convert my ARM to a fixed rate?
Only if your loan includes a conversion option.
Is converting cheaper than refinancing?
It can be; compare the fee with refinance costs.