My friend has a rental property and she is thinking about refinancing but does not have enough equity in it. The interest rate on the mortgage is 4.75% , 7/1 ARM . She plans to hold it long term. Banks require at least 25% equity to refinance. She only has 15% equity. Would you recommend to bring more money to closing to reach 25% equity and refiance it for 30 years fixed rate at 3.625% interest rate? or would you wait for 7 years ARM to finish and refinance at that time so that she would have more equity and won't have to bring much cash to closing? Interest rates are low now so she is thinking if it would be smarter to refinance now. Any advice would be appreciated.