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Best ARM-to-Fixed Refinance Lenders

By Wirly Editorial Team | Updated March 29, 2026 | AI-assisted, human-reviewed

Best ARM-to-Fixed Refinance Lenders

Best Lenders for ARM-to-Fixed Refinances

If you have an adjustable-rate mortgage (ARM), you already know that your interest rate can change over time. When your fixed period ends, your rate adjusts based on market conditions – and that can mean higher monthly payments. Refinancing from an ARM to a fixed-rate mortgage locks in one stable rate for the life of your loan, so your payment stays the same every month no matter what happens to interest rates.

How ARM-to-Fixed Refinancing Works

An ARM typically starts with a low introductory rate for a set period – often 5, 7, or 10 years. After that, the rate adjusts periodically, usually once a year. If rates rise, your payment goes up. Refinancing into a fixed-rate loan replaces your ARM with a new mortgage that has one rate locked in for the entire term, commonly 15 or 30 years.

The process works like any other refinance. You apply with a lender, provide financial documents, and the lender orders an appraisal of your home. If approved, the new fixed-rate loan pays off your old ARM. From that point forward, your rate and principal-and-interest payment never change.

Timing matters here. Refinancing before your ARM adjusts – ideally 6 to 12 months ahead – gives you the best chance to avoid a rate spike and shop around without pressure. According to the Consumer Financial Protection Bureau (CFPB), borrowers who compare at least three lenders typically find better rates and terms.

Who Qualifies for an ARM-to-Fixed Refinance

Lenders look at similar factors for any refinance. Here are the typical requirements you should expect:

  • Credit score: Most lenders require at least 620 for a conventional fixed-rate loan. Some lenders listed here, including Rocket Mortgage, LendingTree, and Navy Federal Credit Union, accept scores as low as 580.
  • Home equity: You generally need at least 20% equity to avoid private mortgage insurance (PMI) on a conventional loan. Some programs allow lower equity with added costs.
  • Debt-to-income ratio (DTI): Most lenders prefer a DTI below 43%, though some will go higher depending on other strengths in your application.
  • Steady income: Lenders want to see consistent employment or income history, typically covering the past two years.
  • Payment history: A record of on-time mortgage payments strengthens your application.

If you are a military service member or veteran, VA loans offer fixed-rate options with no down payment requirement and no PMI. Lenders like Navy Federal Credit Union, Rocket Mortgage, LendingTree, and Guaranteed Rate all offer VA refinance products.

Pros and Cons of Switching from an ARM to a Fixed Rate

  • Pro: Your monthly payment is predictable and never changes
  • Pro: You are protected if interest rates rise after you close
  • Pro: Easier to budget long-term, especially for homeowners planning to stay in the home
  • Pro: Peace of mind knowing your rate is locked in permanently
  • Con: Closing costs typically run 2% to 5% of the loan amount, according to Freddie Mac
  • Con: If rates fall in the future, you could be stuck with a higher fixed rate unless you refinance again
  • Con: A fixed rate is usually higher than the initial ARM rate, so your payment may increase at first
  • Con: The refinance process takes time – often 30 to 60 days from application to closing

Tips for Getting the Best Deal

Shopping smart can save you thousands of dollars over the life of your loan. Keep these tips in mind as you compare lenders:

  1. Compare at least three lenders. Rates and fees vary widely. Getting multiple loan estimates lets you see the full picture side by side.
  2. Watch the annual percentage rate (APR), not just the rate. The APR includes fees and gives you a more accurate cost comparison.
  3. Ask about lender credits vs. discount points. Paying points upfront lowers your rate. Lender credits raise your rate but reduce closing costs. Choose based on how long you plan to stay in the home.
  4. Check if your current lender offers loyalty discounts. Lenders like loanDepot and PennyMac may offer streamlined processes or reduced fees for existing customers.
  5. Lock your rate once you are comfortable. Rates can move daily. A rate lock protects you while your loan is processed.
  6. Review your break-even point. Divide your total closing costs by your monthly savings to find out how many months it takes to recoup the cost of refinancing. If you plan to move before that point, refinancing may not make financial sense.

Use Wirly’s Refinance Calculator

Before you contact any lender, it helps to run the numbers yourself. Wirly’s free tool at Refinance Calculator lets you estimate your new monthly payment, potential savings, and break-even timeline based on your current loan details and target rate. It is a good starting point for understanding whether an ARM-to-fixed refinance makes sense for your situation.

Disclaimer: This content is for educational purposes only and does not constitute financial, legal, or tax advice. Mortgage rates, requirements, and lender offerings change frequently. Always consult a qualified financial professional and review official loan disclosures before making any borrowing decisions.

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This guide is for educational purposes only. Consult a licensed mortgage professional for personalized advice. Wirly is not a lender or mortgage broker.