Is a 5/1 Adjustable-Rate Mortgage (ARM) a Good Idea?
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15 Comments
@joelindberg9386 · November 13, 2026 at 1:24 pm
im a dentist, was making over 500k a year, owned my practice less than 2 year and couldn't get a mortgage for 300k when i bought my house. I don't understand how that was risky when i can fire any of my staff tomorrow for no reason but they just need to show 2 pay checks and can qualify
@milesmoose · November 13, 2026 at 1:24 pm
What is a “varable” mortgage?
@elfpuncher · November 13, 2026 at 1:24 pm
The Fed's goal is to get the fed rate back to 2%. If you get to year 4 and the rate is still elevated, sell the house. If rates go down year 3, refinance.
@saritamoorebansa4485 · November 13, 2026 at 1:24 pm
No way; go with a fixed rate no matter what; there is a chance you can’t Refi your loan due to things you can’t see now.
@DaveM-FFB · November 13, 2026 at 1:24 pm
Back in the 80s, my first mortgage had some of the worst terms ever. I put 1% down and had a graduated payment mortgage with negative amortization – LOL. I literally had no money, and fixed mortgage rates were double digits. Thankfully, as a recent MBA graduate, I knew exactly what I was getting into. I sold the condo 5 years later with a 50% gain, and the rest is history. Thankfully I dodged a bullet.
@AT-hs9nf · November 13, 2026 at 1:24 pm
There is nothing wrong with ARM if you can pay off your home within that ARM period. End of story.
@ThePatriots010304 · November 13, 2026 at 1:24 pm
No 🤦🏻♂️. Just get a fixed mortgage.
@warrenhaines1717 · November 13, 2026 at 1:24 pm
In UK it's unheard of to get a fixed rate mortgages for the entire term of the mortgage. It's popular to fix for between 2 and 5 years. A few people have 10 years fixed but you pay a large arrangement fee for that. ARMs are common place.
@fasteddy3336 · November 13, 2026 at 1:24 pm
I had a 5/1 arm that only could go up a max of 1% a year. I ended up going up only once. The other 7 or 8 years it dropped. I did well on it.
@aryabhimani · November 13, 2026 at 1:24 pm
“Fixed” mortgage is only available for a max of 5 years in Canada. So it’s either variable every month, or fixed for 5 years. It kinda sucks for the mortgage consumers in Canada. No true fixed option.
@rockystaatz521 · November 13, 2026 at 1:24 pm
Arm can destroy entire families in so many ways trying to build wealth and potential it’s dangerous
@MikeSTGL · November 13, 2026 at 1:24 pm
Fixed all the way . If rates go down can refi.
@genxretiree · November 13, 2026 at 1:24 pm
I can relate to Brian’s 2008 story. We had an 80/20 that was stated income when we built our house in late 2005. We own it outright now but until we were able to get it into a fixed it got really dicey for us in the 08-09 timeframe. One reason I play it safe and fixed is I still have the 2008 scars.
@kennethwers · November 13, 2026 at 1:24 pm
Arm's protects banks from rising interest rates. It's not good for the home buyer. Ask yourself why is the bank offer a lower rate. Can you afford a higher payment? I have seen 12% interest rates on home loans.
@nellosnook4454 · November 13, 2026 at 1:24 pm
1. I will be opting for a 5-year ARM for my next SFH rental rehab refinancing.
2. Otherwise, my cash-flow will be tight.
3. I believe our current economic conditions will improve within 5 years.
4. As a rental real estate investor/developer, I would LOVE to get a interest-only refinance.