This has become a very tough economy for everyone including banks. Some say they brought it upon themselves but who is to make that judgment? The banks are a business and they need to keep up with competition in order to give loans and make more money. Current interest rates have dropped very low because of this competition which means you can get a low fixed rate mortgage and keep it for the life of your loan.
You should check your interest rate on your mortgage and compare it to the new fixed rates with a mortgage calculator to see how much money you can save. It is free to check so you might as well see how much you can save because it might be more than you think.
I cant tell you a straight answer of yes or no about refinancing to a fixed rate mortgage because there are a few factors about your mortgage that I would have to know. However, if you have an adjustable rate right now then I highly recommend changing no matter what. The reason to have an ARM rate is in hope for rates to go down and lower your mortgage payment. Well they have lowered to a point where they almost cant go any lower. Now is the time to keep your interest rate low for the life of your loan.
An interest calculator is a very useful tool that will help you compare your mortgage options. You can plug in different interest rates and loan terms to find the best mortgage for your situation. Make sure to include increases in your interest rate if you still want an ARM rate because your rate can possibly go up 2% per year with a maximum of 6% over all. So try adding 6% to your interest rate and see what your new monthly payment is. It will shock you and I doubt you would even be able to afford it.