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.
4 years ago