Yeah, I totally get where you're coming from. ARMs can look tempting at first glance, but the uncertainty factor always made me uneasy. A coworker of mine went with an ARM thinking he'd sell before rates jumped, but life threw him a curveball—job change, couldn't move as planned, and suddenly he was scrambling to refinance. Fixed-rate might cost a bit more upfront, but sleeping soundly at night has its own value, you know?
Yeah, that's a good point about life throwing curveballs...it always does, doesn't it? I mean, ARMs can be great if you're confident about your short-term plans, but how often do things really go exactly as planned? I've seen friends get burned by this too—one thought they'd move in 3 years tops, then suddenly they're expecting twins and need stability more than ever. Who saw that coming?
I guess the real question is: how comfortable are you rolling the dice on something as big as your mortgage? Fixed rates might be less exciting (and maybe a bit pricier upfront), but there's something reassuring about knowing exactly what you'll pay each month, especially when everything else in life feels uncertain. But hey, everyone's comfort level is different—some folks thrive on that risk-reward thing. Me though...I'll stick with boring and predictable any day.
"how often do things really go exactly as planned?"
Exactly. Had a client a few years back who went with an ARM because he was sure he'd relocate for work within 5 years. Fast forward, his company switched to remote work permanently, and suddenly he's staying put indefinitely. He ended up refinancing into a fixed rate anyway—cost him extra in fees and stress. ARMs can make sense sometimes, but life's unpredictability usually favors stability.
While stability definitely has its merits, an ARM isn't always a risky move. For instance, I'm currently considering one because my income trajectory is pretty predictable, and the lower initial rate could free up cash for investments or home improvements early on. It's about weighing individual circumstances carefully.
I get your point about freeing up cash early on, but I'd still be cautious. A friend of mine went for an ARM a few years back because his income was steady and climbing, too. But then life threw him a curveball—company downsized, and suddenly that predictable income wasn't so predictable anymore. He managed okay, but it got stressful when the rates adjusted upward. Just something to think about... sometimes stability can be worth more than you realize until you really need it.
