If you've got an ARM -- subprime or not -- your chance to refinance to a fixed-rate loan is now.  With the market on the rise, borrowers looking to preempt a sharp jump in their loan's interest rate should consider refinancing sooner rather than later.

This is true for almost all popular ARMs.

A 5/1 ARM originated in July of 2002 has held an interest rate of about 5.5%, but with short-term interest rates at current levels, that rate could leap to 7.75% (perhaps more) at the time of its adjustment. 30-year fixed-rates are presently averaging about 6.5%, but have been on an upward trend since March's bottom.

Even a typical 3/1 ARM will bounce from an average 5% in July 2004 to at least 7%, and the gap between present rates and that adjusted rate will probably narrow somewhat in the weeks ahead if the present pattern for interest rates continues.

Many high-frequency ARMs -- especially PayOption ARMs -- already feature interest charges in the mid-to-upper sevens, and even if payments aren't being made at that interest rate, those borrowers are being charged those rates. Borrowers holding out for a decrease in short-term interest rates before considering re-financing their loans could be disappointed, as expanding global growth will probably keep rates at present (or higher) levels for at least the remainder of the year.  The Fed's recent  intervention may afford you time to re-evaluate your options now.