I won't roll through my entire story, but if when I purchase my home in 1999 I had gone with a fixed rate mortgage I would have payed far more each month for the next 6 years in many many many thousands of dollars. I bought it with a 1 year ARM. It dropped every year. I refinanced in 2003 at what was arguably "the bottom" (3/1 ARM at 3%!!!) because I knew I would be out of that home and in a new one in less than 3 years. And I was. Am in a new home now. Bought with a fixed.
Different times, situations, scenarios, and plans call for different loan terms.
But an ARM was the best option for me and I save THOUSANDS of dollars by doing it.
"Different times, situations, scenarios, and plans call for different loan terms."
Nice to see your wisdom here. Rare these days when somebody takes into account all the factors and using them for their gain. Nice job.
That's the way you're supposed to do it! Analyze your situation, and pick the loan that suits it best.
I have had much success with 5/1 mortgages. Like you, I knew that I would be moving within 5 years. However, financing these past couple of years at a one year ARM is not wise.