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| trixiezzz |
 Posted: Thu Mar 17, 2005 5:32 pm Post subject: What do you think of ARMs? |
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Investing Manager
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That's Adjustable Rate Mortgages, that is....
Adjustable rate mortgages: An adjustable rate mortgage (often called an "ARM") offers a fixed initial interest rate and a fixed initial monthly payment. After the initial period is over, the rate and term of the mortgage can be modified at predetermined times under the agreement to reflect the current market mortgage rates. |
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| noksagt |
| Posted: Fri Mar 18, 2005 6:08 pm Post subject: |
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Member of the Month! March
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| They were great many months ago--rates were low on them & dropping. But obviously they're not good if your rates would start going up! |
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| docstrange |
| Posted: Fri May 06, 2005 10:49 am Post subject: Arm |
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New Poster
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If you are only planning to live for a short time in your home or use it as an Investment tool, it is great.
You have 4 options of payments.
Even if you were to pay the very minimum payment, your Equity in your home still increases.
If you live in a state like California, were land almost increase by 15%.
Do the Math.
luisgtorres at paris com |
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| freeye |
| Posted: Mon May 23, 2005 11:26 am Post subject: |
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Investing Manager
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| Colli |
| Posted: Sun Nov 18, 2007 3:56 am Post subject: |
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| Well, it appears that recent history has answered this question better than anyone could have imagined. ARM's have been misused and abused too long and we are seeing the results of that now! |
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| dozer3060 |
| Posted: Mon Jan 21, 2008 2:28 pm Post subject: |
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ARM's are only right for about 5% of the population who are looking to flip houses just watch out for the negative amortizations and interest only loans they are very dangerous for people who don’t know much about them.
By the way they were also very popular right before the Great Depression amazing how history repeats itself. |
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| deprived |
| Posted: Tue Jan 22, 2008 7:49 am Post subject: |
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Investing Sr. Associate
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Many people do realize that they can place a cap on ARMS. Which means if set it to rises 1/4 of a point per year up to a max amount. Many people also
forget to change their mortgages over to a fixed rate. |
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| Slim_80 |
| Posted: Tue Jan 22, 2008 12:28 pm Post subject: |
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Investing Sr. Associate
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| I never knew so many people recently that have ARM's, probably because they are freaking out about them. Also these people did not fully understand what an ARM was and are angry at knowing the risks now. I find that hard to believe because I have bought two houses now and was given the whole explanation of the difference between a fixed and an ARM and most bankers say that they do not recommend an ARM unless you are interested in looking into one. I blame it partially on the bankers on making a deal. |
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| spencer |
| Posted: Fri May 23, 2008 3:37 am Post subject: |
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| It looks like the interest rate swill only be rising from here (they need to rise a lot to stop the dollar from falling), which means that getting a fixed rate loan will be a better choice. |
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| efflandt |
| Posted: Fri May 23, 2008 4:06 pm Post subject: |
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I have always had a fixed rate. However, when I refi'd in early 2005 at lower fixed rate for shorter terms, they gave me a free HELOC to borrow back paid principal at prime minus 0.5%. That variable rate went as high as 7.5%, but is currently 4.5% (lower than my fixed rate).
So it is almost tempting to pay down my mortgage principal with the HELOC, but there is no telling when interest rates will inch back up.
I have never seen the terms of an ARM. Do their rates still go up even though interest rates are again near an all time low? |
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