Cash Out with 5/1 or 10/1 ARM vs conventional financing

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Originally posted by @Bryan Lutz :

Guys with rates at record lows and staying there for quite some time (if you're in the long term low i rate camp). Is anyone looking at a ARM or done one?

 Inverted yield curve means long term rates are lower than short term rates.

A mortgage fixed for 30 years is longer term than a mortgage fixed for 5 or 10 years.

Even setting that aside, rates being low isn't the time to do an ARM. You do an ARM when you have reason to think that rates will go substantially down, like in 1984 when the 30 year fixed rate was 17%. Heck yeah I'll take an ARM at 13% that automatically goes down whenever rates go down, and it's not like rates can really get higher.