you are correct to anticipate the adjustment coming up in the 7th year of your adjustable rate mortgage.
you have also probably read the market indicators correctly in anticipating a rather hefty upward adjustment in your interest rate. since you took your loan four years ago, prevailing interest rates have increased significantly, which means you should expect your interest rate to increase as well once the fixed rate period ends. therefore, if you can qualify to refinance your current loan to a 30 year fixed rate mortgage with a good interest rate you should certainly consider doing so. although your new fixed interest rate may be higher than your current rate, your adjustable rate is unpredictable and a refinance could stabilize your housing situation for the long term by locking in a interest rate and payment amount for the full term of the loan.
i encourage you to visit the home refinance page to learn more about refinance loans and how a refinance could improve your financial situation. if you submit your information on the savings center at the top of the page, we can have several pre-screened mortgage lenders contact you to discuss your refinance options. the interest rate these lenders will be able to offer you will primarily depend on your current credit history. if you have a good credit score, you should little problem obtaining a refinance loan that will help you, but if your credit is less than perfect, you should expect to pay a premium in interest. if you have a low credit score, a refinance may not make sense, as your higher fixed rate will probably hurt your finances rather than help.
if you have other debts, you may want to use the refinance to rid yourself of any high interest obligations such as credit cards or personal loans. utilizing you home equity to pay off high interest debts could mean an interest rate reduction of 10 points or more on those debts. however, be careful before you borrow money against your home to pay off credit cards and personal loans; you are converting what was previously unsecured debt into secured debt. this could cause you problems down the road if for some reason you are unable to make your payments, or if life circumstances force you to file bankruptcy, as you may not be able to discharge the secured debt as you would unsecured debt.
i think a refinance may be a very good idea if the new fixed interest rate is reasonable. i recommend that you shop around and compare the loan terms offered by different lenders.
good luck in finding a refinance loan that fits your needs.
i hope the information i have offered helps you find. learn. save.