Adjustable Rate Mortgage Loans

Adjustable Rate Mortgage Loans - Hindsight is 20/20. If you knew was going to happen in the mortgage industry then why would you ever get an Adjustable Rate Mortgage? Those people that got a 4.00% 3 year ARM are kicking themselves right now when they could have had a 5.00% 30 year fixed. It used to bother me when I would tell someone to listen to me, when I knew what I was talking about and they do the complete opposite. I guess I’m a “told you so” type person, or at least used to be. I’ve grown a little, now I give advice, if you listen great, if not, I’ll give some more on how to fix it. When it comes to ARMs, it usually depends on your situation. If you simply cant afford a fixed rate mortgage, but will be able to in the future, then by all means.

But right now is a very interesting time. Over 2 million ARMs are about to be due on their adjustable period. That with the combination of property values depreciating, we are looking at foreclosure-o-rama. It’s already begun. People are looking to refinance over 100% of the value of their home. Also, because things are getting “tight” in the mortgage industry, people are getting shady. For example, a broker sends over a perfect loan scenario, but for some reason the bank denies it. Broker loses customer, Bank swoops in and steals customer. This has been the common practice for a while, but it is becoming more blatant with the upcoming ARM crisis.

I had thought for a while that someone was going to come up with a solution, some bank would come out with a new product especially for this time. But facts are, they won’t. They don’t have to. They profit from foreclosures as much as loans.

Google News - "Adjustable Rate Mortgage Loans"