is a 5 1 hybrid arm a good idea 
a 5 1 hybrid arm could be a good choice for homebuyers who don t plan to stay in the home long term or who are confident in their ability to refinance to a new loan before the rate adjusts if interest rates remain low and adjustments to the index rate are relatively minor then a 5 1 hybrid arm could save you more money over time compared to a fixed rate mortgage but it s important to consider how feasible refinancing is and where interest rates might be when you re ready to move to a new loan if interest rates rise then refinancing to a new fixed rate loan or even to a new arm may not yield that much in interest savings if you don t plan to refinance and don t plan to move then it s important to consider how realistic that might be for your budget if a rate adjustment substantially increases your monthly payment if the payment becomes too much for your budget to handle you may be forced into a situation where you have to sell the property or refinance and in a worst case scenario you could end up facing foreclosure if you default on the loan payments if you re interested in refinancing from a 5 1 hybrid arm to a fixed rate mortgage consider the interest rates for which you re likely to qualify based on your credit history and income to determine if it s worthwhile 