We're continuing down the road to buying our first home, and the one thing that really confuses me is why in the world anyone would go with an ARM in the current climate. With interest rates as low as they are, what's the incentive? Seems to me that they've got nowhere to go but up... Are banks trying to steer people in this direction by using their credit rating against them? Meaning, if you have less than perfect credit, are they going to try to get you to go with an ARM by making the APR for a fixed-rate artificially high? The only reason I can think of to go with one is that they might offer a low enough rate to make a payment affordable now; but if that's the only thing that would make the payment affordable, then you're going to be screwed when the rates start to move up, right? If someone could explain this one to me I'd really appreciate it! Thanks, -Brett.