Penalty when you refinance
So you want to refinance out of the adjustable rate and hope to get a good fixed rate?
First, check to see if you have a prepayment penalty on your loan.
Many of the loans with teaser rates of 1% have a prepayment penalty clause that requires you to pay 6 months of interest if you pay off the loan early. Now that the 1% is up to 7% or higher, it may possibly be worthwhile to pay that penalty in order to get a fixed rate if you intend to stay in your house longer than 3-5 years.