Sometimes having your ARM start adjusting is a good thing

[rox63]

My 5-year fixed ARM is about to adjust DOWN to 3.125%. Yes, I know it's only a good thing while rates are low. But it can only adjust once a year, so for the next year, this means my required mortgage payment will be significantly lower than before. I can either keep paying what I have been paying, and lower my balance, or I can use that extra money to pay off other bills. So overall, I'm kinda happy it adjusted. :)

[SharonRB]

1. Our first mortgage, years ago, was an ARM

It was when interest rates were really high. It never went up -- over the years it kept going down, until we finally locked it into a lower rate than what we started with. Of course we've now refinanced about four times, but each time our interest rate went down a bit. When we got to 5.625 the last time, about three or four years ago, I never thought rates would get lower, but they have. I don't feel like starting all over again at this point, though, so I'm staying put.

[anigbrowl]

2. here's hoping other people are as sensible as you

and learn from the experience of the last couple of yours to apply any money they save to essentials or paying off part of the principal. K&R for a bit of good news and some sound financial advice.

[Go2Peace]

3. You are fortunate, you have an "honest" ARM, which is very unusual

Most ARMs contained language that they are "Teaser" rates, and they will first move upward to a "hidden" "true" rate, and then adjust from there.

[rox63]

5. It's a "standard ARM", no teasers or hidden rates

If rates start rising much, I'd probably refinance to a fixed rate. But for now, I'll enjoy the low-rate ride.

[4lbs]

4. Make sure that your ARM doesn't have any language in it that zings you to something outrageous,

like suddenly going to 15% if you are even a day late on a mortgage payment.