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I do not recommend an ARM, particularly if you are a first time home buyer. If rates rise in the future the short term benefit of an ARM will disappear in the form of higher payments and interest in the future. Many people take out ARMS thinking that their circumstances will change in the future and they will be able to refinance or sell. The future is uncertain, so why not get a product you can live with if you end up owning the home longer than expected.
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