> Taking an ARM vs a fixed is a bet on whether rates are going to stay the same or decrease, vs increase It's also taking a bet on how long you're going to kee

> Taking an ARM vs a fixed is a bet on whether rates are going to stay the same or decrease, vs increase It's also taking a bet on how long you're going to keep the mortgage. When a bank offers a lower rate for a 7 ARM vs 30 fixed, they're assuming that you will keep the mortgage for more than 7 years. If you pay it off fully before then, you win the bet.