Submitted by i_am_la_quica t3_11w0khm in personalfinance
For context, my cousin and his wife bought a house around the same time we did (our offer was accepted and our mortgage rate is locked in at 6% but closing is not until April 6). We purchased a townhouse for 242k and our mortgage is a 30 year fixed. They also purchased a townhouse and said they got an ARM and said they did that because they can refinance after a certain time period. My cousin was shocked we didn’t get an ARM and has been making me feel like I made a stupid mistake. I was under the impression that you can refinance a fixed rate mortgage too though the process might be different? I then found out that my husband’s mother and cousins mother also only ever had ARMs for their home purchases and now I feel like the seed of doubt has been planted in my mind like I just locked myself into 30 years of 6% with no hope of refinancing if the rates ever get lower again.
I always thought ARMs were to be avoided if possible and that fixed rate mortgages are safer? Will I still be able to refinance in a few years if conditions are favorable?
Sorry if this seems like obvious information this is my first home purchase and I have a lot of anxiety about it. TIA!
Edit: THANK YOU!!! I wasn’t expecting so many replies but I am very grateful for everyone’s reassurance that I did not screw up the biggest purchase of my life so far. I feel much better knowing I can refinance with a fixed mortgage and I can tell my cousin to shove it lol.