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Crestico Funding
  1. Home
  2. Home Loans
  3. Refinancing
  4. Change to Fixed

Change to a Fixed Rate Mortgage

If you currently have an adjustable rate mortgage and want more predictable monthly payments, refinancing into a fixed rate mortgage may provide the stability you are looking for. A fixed rate mortgage keeps your interest rate consistent for the life of the loan, while an adjustable rate mortgage can change over time based on market conditions and the terms of your loan.
Crestico helps homeowners evaluate whether changing from an adjustable rate mortgage to a fixed rate mortgage makes sense for their financial goals, property, and long term plans.

What Is a Fixed Rate Mortgage Refinance?

A fixed rate mortgage refinance replaces your existing home loan with a new mortgage that has a fixed interest rate. Unlike an adjustable rate mortgage, the interest rate does not change during the term of the new loan.
For homeowners who currently have an adjustable rate mortgage, refinancing to a fixed rate can make future mortgage payments easier to anticipate and simplify long term financial planning.
The right refinance option depends on your current interest rate, remaining loan balance, credit profile, property value, closing costs, and how long you expect to keep the property.
Couple discussing changing from an adjustable rate mortgage to a fixed rate mortgage

Why Change From an Adjustable Rate Mortgage to a Fixed Rate Mortgage?

An adjustable rate mortgage can offer an attractive initial interest rate, but the rate may change after the initial fixed period according to the terms of the loan. Changing to a fixed rate mortgage may be worth considering if you want greater payment stability or expect to remain in your home for many years.

Protection From Future Rate Increases

If your adjustable rate mortgage is approaching a rate adjustment period, refinancing into a fixed rate mortgage may help protect you from potential increases in your mortgage interest rate.

More Predictable Monthly Payments

A fixed rate mortgage provides a consistent interest rate throughout the loan term. This can make it easier to budget for your housing expenses and plan your finances.

Greater Long Term Financial Certainty

Homeowners who plan to stay in their property for an extended period may prefer the predictability of a fixed rate loan rather than accepting the possibility of future rate adjustments.

How Does an ARM to Fixed Rate Refinance Work?

The process begins with reviewing your existing mortgage and financial situation. Crestico can help you compare available refinance options based on your current loan and long term objectives.

The typical process includes reviewing your existing mortgage, evaluating your income and credit profile, determining your home’s current value, comparing available fixed rate refinance options, reviewing the estimated costs and savings, and completing the refinance application.

Before refinancing, it is important to consider both the potential benefits and the costs involved. A lower or more stable payment does not automatically mean that refinancing will save money overall.

When Should You Consider Changing to a Fixed Rate Mortgage?

There is no single refinance strategy that works for every homeowner. You may want to consider changing to a fixed rate mortgage when your adjustable rate is expected to increase, you want predictable mortgage payments, you plan to remain in your home for several years, or you want to reduce uncertainty around future housing expenses.

Your current loan terms matter as well. Reviewing the remaining fixed period, adjustment schedule, interest rate caps, current loan balance, and potential refinance costs can help determine whether refinancing makes financial sense.

Fixed Rate Mortgage Refinance in Los Angeles

Crestico works with homeowners looking for mortgage refinance options in Los Angeles and throughout Southern California.
Homeowners in Los Angeles may have different refinance considerations depending on property value, loan size, equity, income, credit profile, and financial objectives. A mortgage broker can help compare loan options from different lenders instead of limiting the search to one lending source.
If you are considering refinancing your adjustable rate mortgage, Crestico can help you evaluate fixed rate mortgage options based on your individual situation.

What Are the Costs of Changing to a Fixed Rate Mortgage?

Refinancing generally involves costs that should be considered before moving forward. These may include lender fees, appraisal costs, title and settlement expenses, recording charges, and other loan related expenses.

The important question is not simply whether the new mortgage has a lower rate. You should also consider the total refinance costs, the expected monthly payment, the new loan term, and how long you expect to keep the property.

Understanding your potential break even period can help you determine whether refinancing is appropriate for your situation.

Is Changing From an ARM to a Fixed Rate Right for You?

Changing from an adjustable rate mortgage to a fixed rate mortgage can be a useful strategy for homeowners who value payment stability and long term predictability.

However, refinancing is not automatically the best choice. If you plan to sell your home soon, the refinance costs may outweigh the potential benefits. In other situations, keeping an adjustable rate mortgage may make sense depending on the loan terms and your financial plans.

Crestico can help you compare your current mortgage with available refinance options so you can make an informed decision.

Frequently Asked Questions

Can I change my adjustable rate mortgage to a fixed rate mortgage?

Yes. In many situations, homeowners can refinance an adjustable rate mortgage into a new fixed rate mortgage, subject to lender requirements and qualification criteria.

Why would I refinance an ARM into a fixed rate mortgage?

The primary reason is payment stability. A fixed rate mortgage can provide a predictable interest rate and help protect against future rate increases associated with an adjustable rate mortgage.

When is the best time to refinance from an ARM to a fixed rate?

The right time depends on your current loan terms, expected rate adjustments, refinance costs, financial situation, and how long you plan to keep the property. Comparing the numbers before making a decision is important.

Will my mortgage payment stay the same with a fixed rate mortgage?

The principal and interest portion of a fixed rate mortgage payment generally remains consistent, although other housing expenses such as property taxes and homeowners insurance can change.

Does refinancing from an ARM to a fixed rate mortgage cost money?

Yes. Refinancing can involve closing costs and other loan expenses. These costs should be compared with the potential benefits of the new mortgage before proceeding.

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