replace ARM with conventional, and funding new roof and kitchen

[Angel S.]

When I bought my property 9 months ago, I was only able to get 10 year portfolio ARM with a 3.625% interest rate. It's a 2-unit, and we're currently living in one of the units, with the plan to move out in a few years. I'm now able to get a conventional mortgage. With the possibility of increasing interest rates, I'm trying to decide if it makes sense to refinance (and possibly need to pay points) to lock in a rate under 4% before interest rates go up. Do I really want to do this, or should I just keep my ARM that will stay at 3.625% for another 9 years and see what comes?

Another factor is the roof needs to be replaced this year and I'm planning on remodeling the kitchen in the unit we live in, so we were thinking of doing a mortgage with cash out. Other possibilities would be just getting a small second if we don't get a new first and just paying for it out of pocket (but then that reduces the amount we have to invest in new properties).