[quote=DataAgent]We bought out current home in 2007. Interest rates were high for the time so we went with a 3/1 ARM. 3 years after we bought, interest rates were much lower. A few years later, we locked into a much lower rate. Although we are not gamblers, sometime it pays to take a little risk.

A few months ago (same house), we re-fi’d into a 10 year IO loan with cash out @ 2.6% rate. It’s hard to qualify for low-rate IO loans but we met all the requirements. We now have 9.5 years with a decent rate and a very low mortgage payment. A lot can happen in 9.5 years so we have lots of options.[/quote]

I bought mine in 99 with a 5/1 ARM at 7.125%. Over the years as rates went down I got into 30 year loans at ever lower rates until grabbing one near the bottom in December 2020.

I have a friend that bought around the same time and got a straight adjustable he never refinanced. He always had the lowest rate until he sold it about 5 years ago.

My best friend for years did I/O 5/1 arms until I convinced to lock into a 30 yr fixed.

This is all well and nice with rates going down all that time but it works in other cases also. Rates have risen quickly but in the next 5 to 10 years there should be opportunities to refi around the same or lower either in fixed or in another adjustable. Combine that with a lower loan balance then and higher income and there is a good case to be made for adjustable hybrid fixed loans like 5, 7 and 10/1 arms.