[elmer fudd]

Amen! There were more warnings about ARMS than Quaker has oats and still these people used them to purchase a primary residence with no thought of refinancing apparently.

Personally I can't comprehend why anyone bothered with ARMs when fixed rates were down at 4 and 5 percent. OK, maybe if you're an executive and you move every couple of years they make sense, but for the other 95% of us it's the epitome of foolishness to get an ARM when you could have gotten one of the best fixed rates that will ever be available.

[samm1148]

"Personally I can't comprehend why anyone bothered with ARMs when fixed rates were down at 4 and 5 percent."

I agree. I think it was the lure of what seemed like ridiculously low payments. I think the real estate flippers used them to their benefit as well. (Not condemning that; if people make money good on them).

[goldstategop]

Exactly. An ARM should be used only if you are sure you intend to stay in the home a short time. Otherwise go the fixed rate route. DUH. And if interest rates decline, you can always refinance the loan later to save on the payments.

"Show me just what Mohammed brought that was new, and there you will find things only evil and inhuman, such as his command to spread by the sword the faith he preached." -Manuel II Paleologus