I have a 7/1 ARM from June 2022, 3.75% fixed through 2029 then SOFR + 2.75%. I have a little over half the 2029 principal balance in a brokerage now. I’d like to invest to minimize the risk of high SOFR in 2029 and poor refinancing rates at that time.
I’m looking at TBX, short 7-10 year treasuries. Thinking if 10 years are up, this will increase in value. If 10 year rates are down, I lose on the investment, but should have a more favorable refi. Am I thinking about this correctly? Anything else I should be investing in?