[Hydroshock]

And lose their homes. I saw a whole lot of ARM’s foreclosed on in the late 1980’s. An I am seeing it now on a larger scale. If you can not afford 120% of the total cost of a house on a 30 year or better yet 15 year fixed with 10% down it is to costly for you. ARM’s are gambling with your families financial future. I will not do that to my kids.

[Always Right]

You base all your decisions on a paranoid reality. Just because a rate is adjustable does not make it more likely you will lose your home. For the first five years, it is less likely if you have a lower rate. Why do you insist that your reality applies to everyone???? It is STUPID to pay extra for a rate when you know you are gonna move. STUPID. End of discussion.

[grellis]

I'm happy with my ARM, primarily because I did some simple math before signing on any dotted line. I got a fixed rate of 4.875 for 36 months. My rate can then adjust upward with a 2% annual cap, so beginning with my upcoming January payment, my new rate will be (at the most) 6.875%. Sounds high, right? My principal is currently $66,567. That means my interest payment will increase from $271 to $276. Five bucks a month.