Yes, but underwriting has to see a net tangible benefit before the refinance gets approved. Trading an illustrative 3% fixed loan for a 6.5% ARM with no cash out shows zero benefit on paper, so that loan gets declined. You would be raising your rate for nothing. Where the move makes sense is when the benefit is something other than the rate. Take a borrower who owes a small balance, say $100,000 on a low fixed rate, and wants to pull cash out to a much larger balance, say $350,000. The cash in hand is the tangible benefit, and choosing an ARM over a new fixed rate can be a deliberate way to keep the payment on the bigger loan more manageable. So the real question is what you are trying to accomplish, and whether the file shows a genuine benefit, more than fixed-versus-adjustable in the abstract. The rates here are illustrative, not quotes.