Help..Can we cancelled the escrow and started another loan application through another agent for 7/1.

Check with the original lender quick. If the loan has been cancelled by them, then it is obvious you can't go back - you would have to start over - but good luck having them cooperate with you as you probably already burned a lock.Note - you can get a 5 yr. ARM in the 3.0% range - low ARM rates are plentiful. Your issue seems to be value.Good luck.

Keep in mind that ARM mortgages make up most of the defaults that have occurred since 2007. Saving a few bucks is not worth the uncertainty. Unless you PLAN on selling your home in 5-7 years, then an ARM makes sense. Rates are too good to fiddle with anything other than fixed.

Sure you can go back. But the loan is probably gone. Would have to start over but rates are better - Should be able to get a loan at 4.25% on a 30 Year fixed (FHA). Or 4.625% Conventional. Tell your loan officer that you want the PAR rate.

Depending on many factors, closing costs and how long you are going to keep the house, may not make sense to refinance from a 5.375% to 5%. Make sure your loan officer gives you comparison savings of different types of loans to see what the saving differences are and the risks associated with adjustable rate mortgage. Your personal finances may not make sense to do an adjustable rate mortgage either. Your question doesn't address many of the important details of your transaction but your loan officer should.