Case in point: Tonight I had a conversation about mortgage rates and whether it would be smarter to take a gamble on a 7- or 10-year adjustable rate mortgage, assume you're going to move out after a few years and subsequently save some cash, or play it safe and stick with the fixed rate even though it's higher. (For the record, clearly this isn't my mortgage or my house or even remotely my life since I spent all my savings on a bike.)
We arrived at the following conclusion: Who knows. Because how do you know where you will be in seven or 10 years, much less 30? I mean, you can have a vague idea of where you want to be or what you think might happen next, but there's no guarantee that will actually happen. (Clearly this is also why you should never have these types of conversations with someone who was an English major and would prefer to turn everything into a philosophical discussion that never ends.)
However, we did figure out that after five years, an ARM equals one brand-new bike.
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