ARM Home Loans (Adjustable Rate Mortgages) Are Properly Named Because They Will End Up Costing You At Least One Arm and Maybe A Leg In The Long RUN

Posted: June 6, 2011 in News, Opinion
Tags: ,

DON’T TRUST YOUR BANK!!!!

If you have a banker who is telling you that an ARM loan is the best option for you for financing the purchase of a house, STAND UP AND WALK OUT OF THE BANK!, because you are about to get screwed.  With interested rate this low for 30 year fixed mortgages you should never even consider looking into one that can adjust to a higher rate.  The interest rate will rise in the near future, it is statistically impossible for it not to, and the bank is hopping to make a fortune off you after your mortgage rate adjusts.

Quote from the Article:

“For an ARM to make sense, a borrower has to be comfortable taking a gamble that interest rates won’t rise, or that he can sell the house before they do. It is a dicey bet now: Rates have been mostly on a downward slide for the past three years, mirroring the recent plunge in 10-year Treasury rates, and seem to be about as low as they are going to get. Many economists are predicting rates will rise in coming years.”

Yet for some reason the article is titled [ Home Loans: A Call to ARMs? ] and states in the first line:

“One of the signature loans of the housing boom—the adjustable-rate mortgage—is looking more attractive than it has in years. For some buyers, it may be an even better deal than a fixed-rate mortgage.”

BTW this first line from the article is a bold faced lie and makes me think this author (AnnaMaria Andriotis, On Saturday May 28, 2011, 12:47 am EDT) is getting paid by the banks to write this article.

 

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