Fixed 30 year vs ARM for first home, fixed won by a mile

Everyone online kept saying an ARM was fine since we'd likely move in 5 years, but I locked in a 6.875% fixed 30 year on a $285k house in Charlotte and now I sleep like a baby. Has anyone else stuck with fixed and felt like the naysayers were just gambling with their payment?

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hall.nora4mo ago

You said you sleep like a baby and I know exactly what you mean. We did the same on our place in Raleigh back in 2017, locked in at 4.25% on a 30 year fixed. Our neighbors took an ARM to save $150 a month and when rates jumped they had to refinance at 7% two years later. That monthly payment went up over $400. Fixed is boring but boring keeps a roof over your head. Charlotte is growing fast but you never know what life throws at you, a steady payment is worth more than a gamble.

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gavinp444mo ago

Man I had a buddy try that ARM gamble in 2021 and it backfired hard.

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