Is it worth getting an ARM considering currently low rates?

ARM rates are generally lower that a fixed rate mortgage and this is the only initial advantage. As soon as rates decide to go up, not likely in the near future, you may want to look at getting back into a fixed rate before they get out of control.

Depends on how long you plan on staying in the home. But my general feeling is that with rates being so low, take the fixed rate and have piece of mind. Is it really worth it to take an ARM that could end up significantly higher rate then the current fixed. What if circumstances change and you cannot or do not want to sell? What happens if you no longer qualify to refi when the adjustable period is over? Best Of Luck!

Only if you see yourself short term in the home... and even then it might not be worth it.. since rates are so low right now, there is only about a .25% difference in a 5/1 arm VS a FRM... depending on your loan amount, the monthly payment difference would be minimal... I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

I can really only answer from the reverse mortgage point of view. If one plans to stay in the home for a very long time, an ARM is the way to go. The reason is the line of credit option has a built in credit line growth. So what money stays in the account can actually give you more money over time. A fixed rate reverse mortgage just offers lump sum proceeds. One receives all the available proceeds upfront. When the proceeds run out, that is all the money available. Since the rates are staying relatively low for the next couple years or so, a ARM could be to the way to go thanks to the interest rate and overall APR on the loan.

In this market where fixed rates are so low there is not a huge margin of difference between fixed rates and ARMS. You have to understand that rates will not stay low forever and eventually they will go back up again and you do not want to be caught in an adjusting rate when rates are soaring high. If you take a 30 or even 15 year term the likelihood that you will see rates go up over the life of the loan is 100%. The only time an arm is feasible is when you have a concrete exit strategy when the fixed rate period ends. If this is your primary home don't risk it- lock into a fixed rate and avoid the stress of having to watch the financial market everyday!

Why bother with an arm with rats sooooo low, even if you have a 5 year plan to move,,,,things change and you could be there longer, so the risk reward is not there in my opinion with rates at all time lows...