[DesertRhino]

“is why borrowers are refinanced into longer-term FRMs rather than less expensive ARMs, such as a 5/1 ARM“

Because they got sodomized in 2008 with those.

[Dr. Sivana]

ARMs allow protection for lenders (investors) from inflation and interest rate increases.

The lenders have to caveat emptor as much as the borrowers do. If they don’t play stupid games, they’ll do fine. Most sell the mortgages to very large investors who are hedged in many directions almost immediately.

[Dilbert San Diego]

Everyone’s situation is different of course.

Personally I avoided adjustable rate mortgages , because you don’t know what the adjustment is going to be a number of years down the road.

Adjustables can make sense for some people. If you get a low initial interest rate that adjusts after 5 years, but you know you’re not going to be in that property for 5 years, then maybe then it would make sense to do the adjustable. Maybe it makes sense if an adjustable is the only mortgage that you can qualify for.