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How has the ARM vs fixed mix changed? We started with a 30 year fixed, but refi'd to an ARM after we got over the conventional wisdom and noticed how much lowe
by millstone 10y ago
How has the ARM vs fixed mix changed?
We started with a 30 year fixed, but refi'd to an ARM after we got over the conventional wisdom and noticed how much lower the rates were. We paid it off before the rate reset and ended up saving thousands.
- dpark 10y agoIt really depends on your financial situation. If you've got the resources to pay off an ARM before the reset, then absolutely you should do that. Why not? If you can make the payments on the 30 year easily, then an ARM could be a good bet to save some money, but there's some moderate risk. If you're a bit stretched making a 30 year, then an ARM is probably too risky because a rate increase could push you into default. If you are able to make the payments on the ARM but not the 30 year fixed, then you probably shouldn't buy at all (at least not that property).