ARMs regain popularity as prices, rates rise

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ARMs regain popularity as prices, rates rise 

In November, 11.2% of homes bought with loans carried adjustable-rate mortgages. That's double the rate of a year earlier.

By Andrew Khouri - When Michael Shuken recently bought his family's first home, a four-bedroom in Mar Vista, his adjustable-rate mortgage helped them stay on the pricey Westside.

For now, his interest-only loan costs him about 35% less per month than a 30-year fixed mortgage, he said. But he'll have a much bigger monthly bill in 10 years, when the loan terms require him to start paying off principal at potentially high rates. >>Read More