Thursday, December 22, 2011

ARMs are Bad !

A  Adjustable Rate Mortgage is bad- no matter how you package it.   Most of my  chapter 13 homes are either purchased between 2005-2009 during the bubble or their ARMS.   Just say NO and get a fixed rate.

Two new packagings for ARMS are:

A 2/28 Mortgage is an adjustable rate mortgage loan where interest is paid for two years at a relatively low rate, and then the interest rate “floats,” or changes, upwards.

With a 50 Year Mortgage the lender gives you a fixed introductory rate for five years, followed by an adjustable rate mortgage for the remaining 45 years