I have a 5-year ARM at 4.5% APR. I can renew the rate at 3.25%. However, that would cost $800. The current loan value is $156,219. Is it worth it for me to renew the rate? How long would it take to recoup the $800? I am planning on refinancing at the 5th year or selling the home before that.
Please, I do not want this to degenerate into a discussion of how ARMs are not good, etc. Let's just assume I know that a 30/15 year mortgatge would have been "smarter".