Did you get caught in one of those bad AR mortgages?
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ANSWERS: 9
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Nah, I got a fixed rate. =)
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No. I have a 30 year fixed.
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Absolutely not. "adjustable rate" means "we realize you can't afford the mortgage so we'll charge the lower interest rate to bring the payment down so you fit into the permissable ratio." The key factor is that you can't afford the loan. Stay away from that trap and get yourself a nice fixed interest mortgage.
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Nope. Had the house paid for since about 96.
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Did, but got out of that and into a 30 year fixed At five and a quarter yo...
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No, I stuck with the fixed rates and that is about all I will sell to anyone looking for a mortgage too.
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Nope- my Cal Vet loan was fixed at 4.4% and it's paid off. :)
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I did have one, then got a fixed at 15 years when rates went down. Am way ahead of payments now.
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ARMs are only "bad" when the borrower fails to understand the terms of the loan to which they agreed. Unfortuantely, many borrowers have either been misled or have convenient memories of the terms. 2/28, 3/36, 2/38, 3/37 and Option ARMs had been useful tools to accommodate a borrowers credit challenges or other circumstances inhibiting their capacity to borrow. All too often they are signs that the borrower wishes to live beyond their means. Sadly, if their credit is not improved over the fixed period of their loans, they are unable to qualify for a better loan and foreclosure results. The blame lies with government. Government encouraged lenders to accommodate borrowers that pose greater credit risks and who have lower amounts of assets (e.g., down payment and or reserves). This is still a problem and has not been eliminated by the collapse of most sub-prime lenders.
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