Are adjustable rate mortgages a good idea?

Never, when interest rates go down, your mortgage will not. When they go up your rate will go up. I am not sure why that person said an arm may be a good idea.





People who opt for mortgages other than fixed either have bad credit or don't know any better. The mortgage company's get you hooked by giving you a rate of 1% the first year and then it increases. Arms give you an extremely low rate then jump up extremely high to make up for those years. They assume you will have more money and be in a better financial position. Your best bet for any mortgage if you have good credit is fixed with the going rate at the current time.Are adjustable rate mortgages a good idea?
yes - great idea





no reason to pay a higher % for a fixed rate when you won't get any benefit out of it when you refinance 3-5 years later





and the guy that said no, you're a moron.Are adjustable rate mortgages a good idea?
yes this is good idea if you have bought a home where the payment will be going higher. If you need help with a mortagage plz give me a call jim 703918 0033 ext 28





i am sure to get you the best price and rates and a excellent deal





take care





jim
thats a big question my man.. Ive sold tons of arms..


it depends how long youre going to be int he hsoue.. what kind of property etc.. if youre going to be in the house 5 years a 3-27 or 3-37 arm is acceptable. you have to look at how high it can go up every year. some are .25% some are 2% per year. then work out your payment. also pay attention to pre payment penaltys. ive also sold 2 year arms (fixed for the first two years olny) and put a 5 year pre payment penaly on them. No re fi or sale without paying off 5% of the loan amount straight to the bank out of the proceeds. jsut use common sense. if youre goign to stay int hat house forever go with a 30 or 40 year fixed rate.


If its investment propert or you plan on flipping it get an adjustable.


Rule no. 1. Do not buy too much house. Dont say well the rates cant go up so i guess i can afford this.. wrong.. the rates were at 18% not too long ago and they could go right back. and guess what? youll be in the long line of people begging for a refinance on a property in foreclosure. good luck. youre gonna need it. lots of hidden danger in mortgages.
It depends on the terms of the mortgage. If you get a mortgage when the rates a relatively high, and can see that rates are going to stay the same or decrease in years to come, there may be a benefit to an ARM.


No one can predict the future. I think it is more practical to have a fixed rate mortgage. The only thing that goes up are real estate taxes.
ARM's are perfectly safe loans. They allow you the lowest rate, in the event your not creditworthy, gives you an opportunity to clean up some issues, and all the while, in most cases you property is increasing in value and when it's time to get in a fixed loan, your financial situation will be more favorable. If you are creditworthy, then good for you. That proves that you are finacially savvy enough to take advantage of this and any other loan product that's out there. In most cases, borrowers refinance out of the arm product before the adjustment period kicks in. They are usually fixed for 2 to 5 years, in some cases up to 10.