It interesting to see that ARMs and I/O rates have dropped to levels prior to the slowdown. For instance, Desertschools has a 3/1 ARM APR 4.65% and I/0 at 5.07 APR.(each has a1% origination fee and terms are based on $100,000 conventional loan).

As most know,this is due to the economic slowdown, feds funds cuts, libor cuts, and treasury demand increasing for short term notes.

The difference being that lending standards are stricter this time around.(atleast for now.)

I already refi thru DSFCU.(20year adjustable) It is due to set at the end of July. Currently it is 6.125. Hopefully, things stay close to how they are because the reset will be near 4.5%. I'd consider the 3/1 ARM if not for the 1% origination fee and $425 application fee. I'm just going to wait and see since the current loan had no origination fees or closing costs.

Besides, I'm for the "1/1" ARM that I have.

Disclosure, I do not work at DSFCU. I'm  merely a member.