| ARM Yourself for Mortgage Rate Increases (2006-07-31) |
|
|
|
|
|
marotta
Senior Member
Cash: $ 81.84
Posts: 332
Joined: 19 Nov 2004
|
| ARM Yourself for Mortgage Rate Increases (2006-07-31) |
 |
|
ARM Yourself for Mortgage Rate Increases (2006-07-31)
by David John Marotta and George Marotta
The party is over for home owners with adjustable rate mortgages (ARMS). Lured by tantalizing rates as low as 3.5 percent in the early 2000s, home buyers jumped at the chance to buy bigger and better. However, in today’s environment, borrowers may not be prepared for their inevitable rate adjustment. The bad news is rates are being readjusted in one direction: up.
Read the complete column at http://www.emarotta.com/article.php?ID=189
David John Marotta
Marotta Asset Management, Inc.
Fee-only Financial Planning
http://www.emarotta.com
|
Mon Jul 31, 2006 5:48 pm |
|
|
SomeBum
Member
Cash: $ 4.65
Posts: 23
Joined: 01 Aug 2006
|
| Re: ARM Yourself for Mortgage Rate Increases (2006-07-31) |
|
|
quote:
Originally posted by marotta
ARM Yourself for Mortgage Rate Increases (2006-07-31)
by David John Marotta and George Marotta
The party is over for home owners with adjustable rate mortgages (ARMS). Lured by tantalizing rates as low as 3.5 percent in the early 2000s, home buyers jumped at the chance to buy bigger and better. However, in today’s environment, borrowers may not be prepared for their inevitable rate adjustment. The bad news is rates are being readjusted in one direction: up.
Read the complete column at http://www.emarotta.com/article.php?ID=189
I kinda laughed my @ss off everytime I seen a commercial advertising ARM! They never ever even began to advertise them until interest rates were at all time lows and they didn't want everyone taking out long term mortgages at rock bottom prices. Now that the rates are starting to go up they are still advertising ARM! I laugh at anyone who picked an ARM when the interest rates were at all time lows... what direction was left to go? It wasn't going to go to 0... there was only one way for it to go! up. Too bad the financial institutions don't really care or they would have never pushed thier customers to pick ARMs when the rates were so low.
|
|
Tue Aug 01, 2006 9:12 pm |
|
|
efflandt
Senior Member
Cash: $ 80.45
Posts: 401
Joined: 25 Apr 2005
Location: Elgin, IL USA
|
For a time they were actually a good thing for people who had plenty of income and were just trying to pay down principal faster (at lower interest).
But they can be nasty for people who got them to lower their payment because that was all they could afford, and bumping interest rates push their expenses beyond their income.
|
|
Wed Aug 02, 2006 12:17 am |
|
|
|
