[Pondman88]

Yada, yada.....

I got a 3/1 Arm, 1 1/2 years ago at 3.5%.....

So I got a very low payment, I got accelerated principal payment, in year 4 it can only rise to 5.5% (still below current market rates) and in year 5, if I want to I can refi.

So no thanks, I'll keep the ARM.

[Phantom Lord]

When most people got their ARMS (1 to 4 years ago), the ARM rate was dramatically below fixed rates and there was tremendous advantage to them. However, today, it is not unusual to ARMS with the same rate as fixed or only .25% below a fixed rate. No big advantage to ARMs currently.

[Travis McGee]

and in year 5, if I want to I can refi.

Did you actually read the article? You are making a hell of an assumption there.

[MineralMan]

"and in year 5, if I want to I can refi.

"

Maybe you can. Maybe you can't. If a lot of folks ahead of you end up defaulting, there may be no money to refi and lenders aren't going to be so eager to refi for you. And...if they do offer you a refi, it may cost you a prohibitive amount in interest and points.

Don't be too confident. Watch the market, and get out if necessary, well ahead of the conversion date.

[newcthem]

Right....I was warned against the dangers of an ARM when I purchased a house back in the 80's. I have refinanced 4 times since then and still have an ARM and at better rates than before. Maybe next year I will get worried.

[Kokojmudd]

Yada, yada..... I got a 3/1 Arm, 1 1/2 years ago at 3.5%..... So I got a very low payment, I got accelerated principal payment, in year 4 it can only rise to 5.5% (still below current market rates) and in year 5, if I want to I can refi. So no thanks, I'll keep the ARM.

Heyyyy...doncha know the market is scheduled to crash before year five, sending millions into soup lines and "hoover-villes." You're supposed to be a-scared! You need to start buying MREs and crates of tuna.

I heard the koreans were able to construct homes out of tin cans during the korean war..so I am saving ALL my empty rosarita refried bean cans for my future construction project.....and you should too....especially since you started all of this by getting an ARM!