arm: Don't Be Fooled Again!
- 05/19/11 09:54 AM
Many people will tell you that an Adjustable Rate Mortgage (ARM) is horrible, and something a borrower should never take out. A friend recently stopped by worried that his ARM was adjusting and that his payment would go through the roof. We analyzed his paperwork and found out that his interest rate would be going down by MORE THAN 2 PERCENT! This made a big impact on his payment! The ARM's that were bad were: Sub Prime loans where the rate was artificially low Had super short introductory periods like two years or less Had a pre-payment penalty that was in force … (3 comments)
arm: Another "60 Minutes" Blunder.....
- 12/18/08 09:44 AM
Once again, 60 Minutes gives a great example of poor journalism......This is ancient news. The ALT A market/Option ARM market has been an issue since day one of the "credit crisis". Yes, we are facing more resets. And, we might only be ½ way through the problem (though that doesn't automatically mean we will or won't have continued price drops). Experts have been predicting that the real estate market won't be out of the woods until late 2009 at the earliest for about a year now. Some have moved that date to 2010. Given the state of the current economy, that … (1 comments)
arm: The Mortgage Du Jour of the last Few Years Slams the Stock Market!
- 07/25/07 08:42 AM
Don't be fooled - Despite their CEO's insistence that it's the housing market that caused his companies 33% drop in earnings and the stock market's subsequent 200 point tumble on the news, most experts believe it's the make up of the portfolio of the largest mortgage banker that is the real ticking time bomb(I can't tell you who the lender is, but their name start's with C and ends in wide). Their CEO has sold over $300,000,000, yes that 300 million dollars of stock in the last year. Of course, he claims it's just an asset allocation move for his personal finance, but it appears … (6 comments)
Many people will tell you that an Adjustable Rate Mortgage (ARM) is horrible, and something a borrower should never take out. A friend recently stopped by worried that his ARM was adjusting and that his payment would go through the roof. We analyzed his paperwork and found out that his interest rate would be going down by MORE THAN 2 PERCENT! This made a big impact on his payment!
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