I know that the rates have been, you know, above 10 percent in years gone by, so I guess it's not out of the question that it could ever happen again. Anderson does realize he could miss out on even lower rates if the economy continues to weaken. But he's satisfied with what's available now and doesn't want to risk holding off. Index is 1-year Treasury bill average and margin is 2.75 percent. And peace of mind has to factor into the equation.
ARMs are a useful, but potentially dangerous tool.
For homeowners who need rate and payment security to sleep at night, refinancing makes sense even if the monthly savings aren't that great. Lastly, don't wait forever for the absolute best rate. Find one you're comfortable paying that allows you to save money and lock it in. If you miss an extra quarter of a percentage point, so be it. My advice is, if you're happy with the rate being offered and the savings make sense to you and you're satisfied with the lender and loan officer you are working with, then lock in your rate and stop shopping.