7 Common Misconceptions About ARMs

Adjustable‑rate mortgages (ARMs) are making a comeback in 2026, but myths still keep many buyers from considering them. Clearing up the confusion helps you decide whether an ARM fits your financial strategy.

1. “ARMs are risky.” Modern ARMs have caps that limit how much your rate can rise.
2. “Your payment will skyrocket immediately.” Most ARMs have fixed periods—often five, seven, or 10 years—with predictable payments.
3. “They’re only for short‑term buyers.” They can also work for buyers planning to refinance or expecting income growth.
4. “ARMs disappeared after 2008.” They never left; they just evolved with stronger consumer protections.
5. “Fixed rates are always better.” Not always. ARMs often start lower, improving affordability.
6. “You can’t refinance an ARM.” You can refinance just like any other loan.
7. “ARMs are complicated.” They’re simply structured differently—and easy to understand with the right guidance.

If you’re curious whether an ARM could lower your upfront costs, your Berkshire Hathaway HomeServices network agent, Jane Sullivan Horne,  can recommend a trusted mortgage professional to talk you through your options.