Sometimes homebuying can be stressful and uncertain. There is much debate in today’s market about which type of mortgage you should get: an adjustable-rate or fixed mortgage. How do you know when it’s the right time to refinance an adjustable rate mortgage?

These are the top tips from Market Street Mortgage, one national retail originator of residential mortgage loans.

Consider whether you can handle rate increases if you buy a home right now before you choose an adjustable-rate mortgage. Do not let this be a simple decision. “What is the cheaper payment to get me into the house”Because it might not be the best investment for the future. A five-year ARM may be an option depending on your financial situation. This is especially true if you are certain that you will move before the ARM adjusts, or if your income is expected to increase. A fixed-rate mortgage is better for stability. It will pay a regular principal and interest portion of your mortgage payments.

Compare the two options. Consider how much money you’re actually saving by switching to an adjustable-rate mortgage instead of a fixed rate. Is it worth taking the chance that the rate will change in the future? Is it worth refinancing later?

What if your adjustable-rate mortgage is already in force?

Take a look at your documents to find out the initial fixed term. A 5/1 ARM, for example, is fixed for five years and then adjusts each year thereafter. You should consider whether or not you will be able to pay the new monthly payment if your loan begins to adjust. Before the adjustment period begins, get in touch with your mortgage advisor to discuss your options and track rates.

Talk to a mortgage advisor for an analysis and the tools necessary to help you make your decision. To find a quali-fied mortgage consultant, visit marketstreetmortgage.com.