Totally get where you’re coming from—timing really is everything with ARMs. I’ve seen folks do well like you, but sometimes people get caught off guard if life throws a curveball and they can’t sell as planned. Out of curiosity, did you have a backup plan in case the move didn’t happen? Just wondering how others prep for those “what if” scenarios…
Backup plan? Oh, you mean besides crossing my fingers and hoping the universe is feeling generous? Kidding... mostly. When I did an ARM, I made sure I could rent the place out if selling didn’t work out. Not my dream scenario, but at least it’d cover most of the mortgage if things went sideways. I also tried to stash a little extra cash just in case rates jumped and I had to ride it out longer than planned. It’s not foolproof, but it helped me sleep at night—well, most nights anyway.
When I did an ARM, I made sure I could rent the place out if selling didn’t work out. Not my dream scenario, but at least it’d cover most of the mortgage if things went sideways.
That’s a pretty solid approach—having the rental option as a fallback is smart, even if it’s not ideal. I always wonder, though, how many folks actually run the numbers on what local rents would cover? Sometimes people overestimate that safety net. And stashing extra cash is huge, but with rates as unpredictable as they’ve been lately, how much is “enough” to feel safe? I’ve seen clients get caught off guard when their ARM reset way higher than expected. Curious if you factored in vacancy periods or just assumed steady tenants?
Yeah, I hear you on people overestimating rental income. It’s easy to look at the “average rent” and forget about stuff like vacancies, repairs, or even just bad tenants. When I refinanced into an ARM a couple years back, I tried to be conservative with the numbers—assumed a month or two empty each year and padded for maintenance. But honestly, it still felt like a gamble. The rate reset was way higher than I expected, even after all the spreadsheets... Makes me wonder if any safety net is really enough in this market.
Definitely get where you’re coming from. That rate reset can sneak up on you, even if you plan for the worst. I always try to run numbers using a few different scenarios—like best case, worst case, and something in the middle—but it’s tough to cover every curveball.
Same here. Even a big emergency fund feels shaky when rents drop or repairs pile up. I’d say, if you’re thinking ARM, double whatever cushion you think you’ll need... and then maybe add more.Makes me wonder if any safety net is really enough in this market.
