Aside from the folks that refuse to acknowledge that their ARMs will adjust to a higher rate and choose to keep their heads in the sand, don’t the vast majority of ARMs have a no-refi clause in their contracts that do not allow a refinance for X amount of time? The penalty for doing so will cause a significant penalty to be incurred?
I dont know this for a fact because I have only had fixed loans, but I thought I remember hearing friends and co-workers mention it.
