steve55121 0 Report post Posted March 27, 2005 Hello, I was wondering how any of you are handling ARM/ justable rate mortgages. It seems everyone who has purchased in tha last few years has done so on a ARM. Sometime I'm a little hesitant on skinny deals knowing the mortgage only has 1 year left or less until it starts adjusting. Then who knows what it will be -Steve Share this post Link to post Share on other sites
Jonathan RexfordFL 8 Report post Posted March 27, 2005 If you have a potential deal, read the note. It will describe how and how much the rate may change. What the CAP Rate is and so forth. Personally I have know problem with ARM's. Your Exit plan needs to be more planned out. Share this post Link to post Share on other sites
-Tony- 0 Report post Posted March 27, 2005 What Jonathan RexfordFL said and if it is a CA, to be ohnest who cares if a SLO refinance in a year or ajust the rent Share this post Link to post Share on other sites
<Steve> 82 Report post Posted March 28, 2005 Most ARMs today are limited as to how much the interest rate can increase; maybe 1 to 2 points a year. So, if rates were to sky rocket, it would take years for this type of ARM to catch up. Even still if rates increase, ARMs still stay lower that fixed rate mortgages. Let's face it, rates are still at record lows. I remember when 10% was considered the norm. <Steve> Share this post Link to post Share on other sites
Adam King (MI) 1 Report post Posted March 29, 2005 I agree with Steve. You can look at it this way too. If you're doing an ARM that is interest only (Which most or all are), then who cares if it goes up? You still get that amount as a tax benefit if you own the property or pay the mortgage. It can adjust at a 6 or 12 month interval based on last year's index. Plus, the average refinance rate is 4.9 months! SO WHY DOES EVERYONE WANT A 30 YEAR FIXED RATE!?!?!?!?! WAKE UP PEOPLE!!!! Someone complained to me the other day about the gas prices going over $2. I showed a sigh of relief.What the heck is wrong with you Adam, they asked.Something more to write my taxes off with, I said.Regards,AdamPS Check this out https://www.wlg-online.com/BizCenter/downlo...arnessPower.pps Share this post Link to post Share on other sites
