There has been a lot of discussion about how the adjustment period of ARMs are going to have a major detrimental effect on the housing market as people with adjustable rates that they got over the past 2-3 years will be seeing their payments skyrocketing as these ARMs adjust. Well, it is just possible that this is not going to happen. The major index for ARMs, the LIBOR has dropped dramatically lately and those adjustments may not be coming the way someone would think.
Please read the whole story here. Now, I think that it is best for most people to get into a fixed rate, but not necessarily for everyone, especially if you have lost equity. My best suggestion, give me a call. Pull out the note and adjustable rate rider that went with it. Let me go over your options with you. Think before you make a major jump!