<prompt> Human: Ive always read to stay away from ARM loans. If I have an option of financing a mortgage through a credit union that is offering an ARM rate of 3.25 and is locked in for 5 years, is this something I should consider? I could get a fixed rate of around 4.5 on a 30 year mortgage. Should I stay away from ARM loans at all costs? Why not do that for 5 years and then refinance? Up until now, I havent even considered an ARM loan but thought Id like to get some more info.  <response>: I could get a fixed rate of around 4.5 on a 30 year mortgageIf you can get that, do it. Rates will most likely go up in the next year, maybe sooner. After 5 years when the ARM resets, its going to hurt. ARM makes sense for shorter term loans. And even when you refinance in 5 years, depending on the market of course, you may not get anything close to 4.5 that you could be getting now. 