Sometimes you have to settle for an adjustable-rate to get a lower interest rate when you really need it. Now that you have been making your monthly payments on a regular basis and interest rates are low, this might be the perfect time to lock yourself into a low fixed-rate mortgage.
To shorten the term of your loan
If you bought your home under a 30-year mortgage to save money on your monthly payments, you might find that the lower interest rates we are experiencing right now might make a 15-year mortgage out to be only a bit more expensive, or even less expensive, than what you are currently paying.
To take advantage of less expensive mortgage insurance
In early 2015, the Federal Housing Administration announced that it would reduce the mortgage insurance premium rate charged for FHA-backed loans from 1.35 percent to 0.85 percent. Some estimates say that can mean a savings of as much as $900 a year for anyone refinancing a house. The FHA made this decision to spur home buying, but it works out in your favor too, if you refinance. Even better, if you have enough equity in your home, you might be able to refinance from an FHA loan to a conventional mortgage and remove those mortgage insurance payments altogether!