Something like 60% of homeowners would come out ahead financially with an ARM. You can save tens of thousands of dollars in interest before the rates adjust. Ma

Something like 60% of homeowners would come out ahead financially with an ARM. You can save tens of thousands of dollars in interest before the rates adjust. Many people sell or refinance before the rates adjust, or soon after. The rate early on is a little more important because that is when the principal is highest, but in practice this isn't a huge factor. Only about 35% of the original principal is paid off after 10 years for a 5% mortgage. Even if rates go up and you stay there for 15-30 years, you could come out ahead because of how much lower the interest was for the first 5-7 years. But it depends on how much rates go up. But the long tail is some people being priced out of their home as their payment rises, and it could have been prevented. So 90-95% of mortgages in the US are fixed rate.