title. i understand the difference between variable and fixed as definitions however with loans, ‘variable’ doesn’t quite register to me..
why on earth would someone consider that type of loan with a purchase of let’s say, a house?
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I have a 10-1 arm loan. First 10yrs are at ~2.5%. Year 11-30 varies based on inflation but is capped at ~7.5%.
Lower rate to start helped us have more overall purchasing power and get a better house. We’re about 2yrs in and plan to refi at some point or maybe we’ll just sell and move.
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