We went with a 5/1 ARM a few years back because the starting rate was just too tempting compared to fixed. It’s been mostly fine, but now I’m getting a little anxious with rates creeping up. I keep wondering if we should’ve just locked in a fixed rate instead. Anyone else feeling the same regret, or did it actually work out for you?
Totally get where you’re coming from. We did a 7/1 ARM because I figured, “Hey, we’ll probably move before it adjusts.” Fast forward, we’re still here, and now I’m watching rates like a hawk. My crystal ball was definitely on the fritz.
“Hey, we’ll probably move before it adjusts.” Fast forward, we’re still here, and now I’m watching rates like a hawk.
That’s the classic ARM gamble, isn’t it? I’ve seen clients in similar spots—plans change, life happens. It’s easy to underestimate how long you’ll stay put. I always tell people to stress-test their budget for the worst-case adjustment, even if moving seems likely. Sometimes the “temporary” house becomes home for a lot longer than expected...
Sometimes the “temporary” house becomes home for a lot longer than expected...
That really hits home. We thought we’d be out in two years, tops, but here we are—five years later and still unpacking boxes. I used to think I could predict our timeline, but life’s just not that tidy. Watching rates climb lately has me double-checking our budget more than I’d like to admit. It’s stressful, but you’re not alone. Sometimes you just have to roll with it and hope for the best.
RIDING THE RATE ROLLERCOASTER WITH ADJUSTABLE MORTGAGES
It’s interesting to hear how many people planned for a short stay and ended up sticking around much longer. That’s definitely more common than most of us expect. In my case, we went with a 7/1 ARM thinking we’d move before the adjustment period kicked in, but life had other plans—job changes, kids, you name it. Now that rates are higher, refinancing isn’t as attractive as it once was, so I get the anxiety.
One thing that’s helped me is running the numbers every year, just to see how much room we have if the rate adjusts to the cap. Not exactly fun, but it keeps surprises to a minimum. I do sometimes wish we’d just gone fixed from the start, but at the time, the lower payments made a big difference. Hindsight’s always clearer, right? At least we’re not alone in this boat.
