Comments on: Taking responsibility http://2cworth.com/2006/09/14/taking-responsibility/ Building my Internet Worth Sat, 22 Nov 2008 03:40:35 +0000 http://wordpress.org/?v=2.0.2 by: Phil http://2cworth.com/2006/09/14/taking-responsibility/#comment-3749 Thu, 14 Sep 2006 16:44:59 +0000 http://2cworth.com/2006/09/14/taking-responsibility/#comment-3749 Can't agree with you more on the "Not My Fault" syndrome...but with respect to ARMs, I have to comment. I am a mortgage broker, and deal with folks on a regular basis who won't touch ARMs with a ten foot pole. And why? Because they are underinformed. ARMs are demonized in the media, torn apart in the blogosphere, and hated by the individuals who took them for the wrong reasons. And I think it is a shame, because adjustable rate mortgages can be a really useful tool. There are circumstances where adjustable rate mortgages simply make the most sense. If you do not plan to own your home (or go without refinancing your current mortgage) for 30 years, then why take a 30 year mortgage with higher rates? If you intend to sell in, say, 7 years - then it makes perfect sense to take out an adjustable rate mortgage that is fixed for the first 7 or 10 years, at a lower rate than a comparable 30 year fixed. Now, using an adjustable rate mortgage to buy a house that you just can't afford....well, that <i>is</i> just a bad idea. Can’t agree with you more on the “Not My Fault” syndrome…but with respect to ARMs, I have to comment. I am a mortgage broker, and deal with folks on a regular basis who won’t touch ARMs with a ten foot pole. And why? Because they are underinformed. ARMs are demonized in the media, torn apart in the blogosphere, and hated by the individuals who took them for the wrong reasons. And I think it is a shame, because adjustable rate mortgages can be a really useful tool.

There are circumstances where adjustable rate mortgages simply make the most sense. If you do not plan to own your home (or go without refinancing your current mortgage) for 30 years, then why take a 30 year mortgage with higher rates? If you intend to sell in, say, 7 years - then it makes perfect sense to take out an adjustable rate mortgage that is fixed for the first 7 or 10 years, at a lower rate than a comparable 30 year fixed.

Now, using an adjustable rate mortgage to buy a house that you just can’t afford….well, that is just a bad idea.

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