Definitely see your point about checking the caps closely, but honestly, even tight caps can add up over time. I've seen clients who felt comfortable at first because of manageable caps, but after a few adjustments, things got tighter than expected. Always good to run through different scenarios—best-case and worst-case—to see how comfortable you'd still feel. ARMs can be useful, sure, but make sure you're prepared for the long haul if rates don't go your way...
Haha, totally get the caution around ARMs—been there, felt that pinch myself. One thing I've learned (sometimes the hard way) is to always factor in wiggle room for those unexpected rate jumps. I usually run numbers assuming rates will hit the max cap at some point—call it my "doom scenario," lol. Curious though, has anyone here actually had an ARM that ended up cheaper long-term, or do we all just brace for impact eventually?
"I usually run numbers assuming rates will hit the max cap at some point—call it my 'doom scenario,' lol."
Haha, love the "doom scenario" approach... been there myself. Actually, my first ARM turned out cheaper overall because rates stayed low and I refinanced before things got dicey. It's doable, just gotta stay vigilant and flexible.
Haha, I get the logic behind the "doom scenario," but honestly, I've found that sometimes being overly cautious can cost you opportunities. When we refinanced a few years back, I was convinced rates would spike any minute, so I locked in a fixed rate. Felt smart at first, but then watched as rates stayed low for years afterward—talk about kicking myself.
"Actually, my first ARM turned out cheaper overall because rates stayed low and I refinanced before things got dicey."
This is exactly why I'm reconsidering ARMs now. Seems like if you're paying attention and ready to move quickly, you can really benefit from the flexibility. But then again... life happens, right? Job changes, family stuff—things that make refinancing tricky when you least expect it. Curious if anyone's had experiences where they planned to refinance but couldn't pull it off in time?
Totally get your point about life throwing curveballs. I've seen clients who planned to refinance but then got hit with unexpected job changes or medical issues, and suddenly refinancing wasn't an option. ARMs can definitely save money if you're proactive, but it's always smart to have a backup plan. Maybe consider how comfortable you'd be if refinancing wasn't possible exactly when you needed it... just something to think about.
