ARM
Arm Holdings plc
stock NASDAQ ADR

I went with a 7/6 ARM last year that was about a full point lower than a 30 year. I plan to pay off in 7 years or refinance depending on rates.

Okay so we get a relief rally tomorrow, what 1dte option 10x’s are there as the degens try to buy some up before we dump again? I’m thinking ARM has some room up and MU/SNDK are way too low but it’s a bit early for them.

Yeah we had a 2.8%, now on a 10/1 ARM at 5.375%. Nowhere near the 10 years so waiting patiently for a good time to refi, closer to 5% on a fixed would be nice. No regrets, bought a much nicer house in a nicer neighborhood.
Those rock bottom rates were an anomaly. Eventually people will choose or have no choice but to move for one reason or another.

Does the ARM have limits on interest hikes? We went with an ARM (one 5 and one 7) back in 2022 and got a 2.1 percent interest rate. I was freaking out that in 27 our rates will go up but met with our bank and forgot the terms - basically it’s capped to never go higher than 2 percent above the rate and it can only go up by 0.5 percent max every 6 months. Obviously we bought at a super low rate so nowadays it wouldn’t make sense but if in 7 years you’re likely to be able to pay it off or refi then depending on how much it drops the rate it might be financially worth it (although refi also costs $$$)

I have ptsd from ARMs, but only because of going through my MBA program during the recession. Will never forget our professor coming in amidst all the economic turmoil and imploring to the class to just stick to fixed rate 30y mortgages bc you can plan your future around that and it’s immune to market changes. Even if you think by today’s standard that you can afford the payment after the rate adjusts, your life may be different in the future.
My parents were one of those ppl like many that took out an ARM, thinking they’d refinance in 7 years. When the housing market crash they were under water. They couldn’t make the payment when the rate adjusted bc they couldn’t refi. They, like many, wound up losing their home. It was a tough time.
I don’t think I could ever do an ARM, the wounds are too deep. One of those things I need to remember to learn from history. With the current state of the economy, anything can happen.

7/1 ARM for 5.1? Jump on it.
I just refi'd a month or so ago to 7/6 ARM 5% and it required 0.5% relationship discount with the bank (so true interest is 5.5%)
Adjustable phase of the ARM is almost never worth it. Mine is 2.75+current SOFA rate. So if my loan were immediately to go to ARM phase today, it will jump to 6.4% (with 0.5% discount for net 5.9%). So the Adjustable rate part is almost 1% higher than my fixed rate.
Plan is to refi within 7 years, assumption is that interest rate will drop. Also not buying points, if anything I'm more willing to take points credit with slightly higher interest rate to have less out of pocket, due to knowing that refi is on the horizon.
If crazy things happen and interest rate never drop in the next 7 years, then plan is to aggressively pay down the loan.

if you can't afford a trad mortgage, you can't afford that house. Using an ARM would be foolish, b/c at best you pay refinancing costs in 3 years & have no equity

I took out a 7/1 ARM a little over 10 years ago because that was the only physician loan product available with 0 down. I also thought I would possibly move after residency. Ended up staying. However, I aggressively paid down the principal the last few years of the fixed term, before the rate reset. When it did, the rate went from 3.375 to 6, if I recall. But by then I had paid down enough that the new payment was actually about the same as my previous one at 3.375. Continued to pay extra and decided refinancing wasn’t worth it as the payment amount was actually getting smaller each year, and the extra principle payments would help offset the higher rate.

You don’t know.
That’s what an ARM is…

A lot of individual stories coming together at a bad time:
1) META and GOOGL are getting hit for losing their court case about social media addiction.
2) The memory stocks are getting hammered because of the TurboQuant announcement.
3) The Semis are getting hit (to a smaller degree than the above) because of ARM's announcement of entering the data center chip space.
These all did happen technically yesterday, but the news all is getting digested today.

the market is genuinely pricing MU as if it was a failing dumpster
7x forward p/e whilst ARM has 61x lmfao

We are doing a 7/1 ARM, mostly due to the lower interest rate.
Plan is to pay some extra principal and refinance between years 6-7 after improving our LTV and before the rate resets.

Thing is, ARM is currently making strides compared to x86 chips, and if ARM can secure it's market share from their expertise about the architecture, the payoff can be huge.

ARM is not competing with Intel and AMD. It's openly competing with its own customers.

Considering a 7/1 ARM for a home purchase. Am I missing something here?

This is the best I heard. ARM is embarking in AI. Needham shifts stance on ARM to Buy rating from Hold, establishing a $200 price objective. Is it a buy the dip?

So today the market decided the CPU rage is only good for ARM? thats pretty wild lol. But anyways this is typical after out performance, just gives it all up in the 1st hour. This time is pretty stupid though when its on the back of more CPU price hike rumours which are genuinely really good sign.

no one should buy a house right now, especially w/ an ARM.
--someone who owned a townhome in FL in late 2000's

MU forward P/E is too high at 20x. Better pump ARM at 87x instead

Balloon mortgages don’t exist anymore in the US really.
And yes that’s kind of the point with an ARM. Shouldn’t take one if you can’t afford payments at higher rates. But they can make sense esp if you think you may move.
Do remember that people outside the US almost exclusively take out ARMs and those housing markets haven’t collapsed. Just need to know what you’re signing up for