I’ve watched a few colleagues take on ARMs for short-term projects, and it worked out—mainly because they had a clear timeline and backup plans. But I’ve also seen things go sideways when the market shifted faster than expected. Personally, I lean toward fixed rates for peace of mind, especially with unpredictable timelines. The upfront savings with ARMs are tempting, but I’d rather avoid surprises down the line...maybe I’m just too cautious, but I’ve learned not to underestimate how quickly things can change.
Totally get where you’re coming from—ARMs can look good on paper, but that unpredictability keeps me up at night. I’ve seen buyers get caught off guard when rates reset higher than they expected, and suddenly the “deal” isn’t so great anymore. If someone’s got a fixed exit plan, maybe it works, but for most folks, that peace of mind with a fixed rate is worth more than the initial savings. Markets shift fast, and it’s tough to time them perfectly... I’d rather play it safe unless there’s a really solid reason not to.
I get the concern about unpredictability, but isn’t there a case for ARMs if you’re planning to move or refinance before the rate adjusts? I’ve seen buyers lock in a much lower rate for 5-7 years, then sell before the reset hits. Sure, it’s a gamble if your plans change, but sometimes that initial savings can be significant—especially if you’re disciplined about your timeline. Curious if the risk is really that much higher if you’ve got a clear exit strategy...
I get the logic behind ARMs if you’re dead set on moving before the rate jumps, but life’s got a way of throwing curveballs. My buddy swore he’d be out in five years—then twins happened, job market shifted, and suddenly he was stuck with a mortgage payment that made his eyes water. If you’re the type who color-codes your calendar and never loses your keys, maybe it works. But for the rest of us... fixed rates just let you sleep a little easier, even if you pay a bit more upfront.
I keep hearing the “life happens” argument and yeah, I get it—my life is basically a sitcom on a good week. But isn’t there something to be said for the money you save upfront with an ARM? Like, if you’re already stretching every dollar just to get in the door, does locking in a higher fixed rate really make sense? Maybe you just gamble on those first few years being stable... or am I missing some huge hidden risk here?
