Adjustable rate mortgages?

Why do ARMs get such a bad rap? In 2004 we bought a house at 4.75% with a 3 year ARM. In 2007 it went up 2%. Next fall the rate should go back down to 4.75% as per the way the LIBOR is going. Thus ARMs are great whereas fixed rates would stay higher.

Adjustable rate mortgages?

They get a bad rap because sometimes people agree to them, they barely manage the initial payments, and then a few years later, their payments go up 20% (several percentage points in the lending rate can add quite a huge chunk onto actual payments) - they can%26#039;t pay the new amounts, and end up in foreclosure.

I%26#039;m glad it%26#039;s working out for you - but ARM%26#039;s are a bit of a crap shoot, and some people end up on the losing end.

Adjustable rate mortgages?

If you get lucky and the rate doesn%26#039;t jump that high then it%26#039;s OK. A lot of the problem is that people are buying houses they can barely afford at low introductory rates and when the interest rises they can%26#039;t afford the payments any more. A lot of times it%26#039;s people with less than stellar credit ratings who get the ARM%26#039;s because they can%26#039;t get a good fixed rate. They%26#039;re usually not known for being good with their money to begin with.

I%26#039;ve got a fixed rate mortgage with interest less than 6% but my husband and I are both very careful with our money and both have credit scores over 800. I would never get an adjustable rate mortgage.

Adjustable rate mortgages?

So far u have lucked out. So Far.

however u said %26#039;should%26#039; go down.

so u are willing to gamble the house on what many know can cause to lose their house. a fixed rate is much better.

of course u don%26#039;t remember 14-18% house mortgages.