The 30/30 ARM vs fixed rate spreadsheet test in Phoenix

I ran the numbers side by side on a 1.2M deal in Tempe and the 30/30 ARM looked cheaper on paper for 7 years, but once I added refi costs and rate risk it was honestly a wash. Fixed rate won for me because the payment stability made the underwriter and my investor both more comfortable, has anyone else found the ARM savings just don't pencil out after stress testing?

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riley8602mo ago

Did your friend end up regretting the fixed rate when rates dropped a year later? Mine did, he locked a 7/1 ARM, closed, then watched rates fall and all his savings just went to the refi and the headache.

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