> If rates are going down they are a great choice as you will refinance in a couple years anyway.
It's also great to put all my money on black if the roulette wheel is going to land on black. Mortgages are long term, making predicting future rates 3-5-10 years out very hard.
> Since ARMs are lower rates they save you money in the short run.
The low rates of the last 5ish years compressed the difference between fixed and variable that there was little reason to take on the variable risk. As rates go up, that calculation will likely change.
> They are also good if you have reason to believe you won't live there for more than a couple years.
You should rent then. The cost and friction of RE transactions are too high for someone not planning to be there for 2+ years.
It's also great to put all my money on black if the roulette wheel is going to land on black. Mortgages are long term, making predicting future rates 3-5-10 years out very hard.
> Since ARMs are lower rates they save you money in the short run.
The low rates of the last 5ish years compressed the difference between fixed and variable that there was little reason to take on the variable risk. As rates go up, that calculation will likely change.
> They are also good if you have reason to believe you won't live there for more than a couple years.
You should rent then. The cost and friction of RE transactions are too high for someone not planning to be there for 2+ years.