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To: CSM
Think MI and then think of how screwed the folks with ARMs are in MI.

LOL--me!!! When we refinanced our primary mortgage with an ARM, we did so knowing that we'd have the house on the market within 18 months. One year after our refinance, our house went on the market--and it is still there, over 18 months later!

We're not screwed, though. I was very careful to make sure of what we were getting ourselves into, and that we would be able to afford the rate increases if the real estate market tanked, which it did, spectacularly.

50 posted on 08/21/2007 9:20:10 AM PDT by grellis (Femininists for Fred!)
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To: grellis

Thank goodness you used a very reasonable approach. I’m not saying that everyone that does an ARM is “stupid.” However, it is a risky proposition for many and I think the variable of “planning to sell” a house within a couple of years is a variable that is to easily influenced by markets like what is in MI right now.

I have a friend, and fellow FReeper, that relocated out of state. He bought his house a few years ago (I think 6 years ago) for $145ish, then pulled a little equity out so that his current mortgage balance is about $152K. His vacated home is currently on the market for $138K.

The market is a mess.....let’s hope it turns around soon.


51 posted on 08/21/2007 10:52:40 AM PDT by CSM ("The real question is, why don’t we hate them?" - Veto! (8/9/2007))
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