Is it right time to refinance my 1M loan from 6.375 to 5.87% 7 ARM with no closing costs, except appraisal and escrow

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Realtor here- Go for it and refinance at $0 again if rates drop in 6-8 months. I have doing the same for my clients with my lender currently

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Escrow is not even a "cost" as you get your current escrow refunded. Sounds like a no brainer to me. We're going to be headed towards a correction aka recession in the not so distant future. If all you're really paying is appraisal, you can just do another refi in a year or two when the market corrects.

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How do you get a bank to offer you a refi with no closing costs?

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All you’re doing with a “no cost” refi is tacking on the fees you’d otherwise pay out of pocket onto the principal of your existing loan. Typically, refinancing isn’t recommended for less than a full point drop in the interest rate, or 1.5 if you roll those costs into your loan.

I refinanced my house 4-5 times as rates dropped from 2000 to 2021. You probably also will have to pay for a new title insurance policy.

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Not for owner title policy. That’s stays with you till home ownership. Lender title insurance should be covered as part of lender credits.

Whosoever messaged me, sorry for the delay. I shared the contact info in your messages.

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Nah, I’d keep fixed. The ARM is the only reason you have a lower rate.

What bank are you using?

Not a bank. Local mortgage broker

Is your 6.375 an ARM also? If not, I wouldn’t. What makes you so certain mortgage rates will go down? If they go up you could be screwed. Half a point down is not materially a big difference

Why not? It's still 7 years fixed. Very good chance that either rates will go even lower before then, or that you won't even be in the house at that point.

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