Sunday, December 09, 2007

ARM's are good

I just watched Charlie Sykes' Sunday morning show, which included the doughy hack from the Shepard Express vilifying adjustable rate mortgages and suggesting that they be eliminated. What a financial moron.

I had an ARM for the 2nd half 1990's and held it until the summer of 2005. During that time, I took advantage of declining interest rates, with my adjusted mortgage rate falling below 3% for some years. It was a beautiful thing.

When mortgage rates began to turn around, I locked a fixed rate mortgage at less than 5%, another beautiful thing.

Anyone financially ignorant enough to choose an ARM at a time of historically low fixed rate mortgages deserves what they got. They do not deserve to keep that home that they cannot afford.

1 comment:

Marcus Aurelius said...

Back in '05 we bought a lot with the assistance of a 3 year ARM. This September it turned into a 1 year ARM and in late winter/early spring it will turn into a 30 year conventional.

I figured we would be building before the ARM adjusted and we are.