Interest Rates gamble - 30 yr. fixed vs. 5-year ARM's

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Sure there is a gamble. If he moves in 5 years, he will have paid a premium for the fixed rate but gained no advantage.


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I also went through this a year ago. I took the 5 year ARM. But, I also bought a new house, the builder bought down my rate. Talk to builders, housing is looking too/has slowed some and deals are being made. Just a suggestion, but I ended up with 2x the house for the same mortgage at half the payment.