Should we refinance or keep the Pay Option Arm ?We are thinking of refinancing to lock in a low rate. We want to keep the home, probably as in forever. We got a pay option arm back in 2005, which I am still trying to understand. Right now, our rate is tied to the MTA rate and the interest changes monthly. It's still at 3%,, which is wonderful. BUT, I know this rate won't be forever. I am hoping someone can help me decide whether it is in our best interest to refinance or not. Refinancing will cost alot of money upfront because we are underwater and we want 20% equity to avoid the PMI. If someone is familiar with this pay option arm that Countrywide did, please help me decide whether to keep this as is or lock in the rate with a refinance. See, if the rate goes up and up, I might not be able to keep up, but if we put a large sum of money down and lock in the rate, there would be few worries. Thanks for any help.July 09 2013 - US00YesReport a ProblemProblemSelect oneOffensive contentIrrelevant contentSpam (pure self-promotion)OtherDetailsYour emailPlease enter a valid email address.Submit CancelContent flaggedWe will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.We're sorry. This service is temporarily unavailable. Please come back later and try again.