Adjustable Rate Mortgages (ARMS) are still around

In a world of low, fixed rate mortgages, you wouldn’t think the old adjustable rate mortgages (ARMS) so popular in the 90s would still be around.  But you’d be wrong!  Today our hosts Hamid and Fay Hamidanchy discuss their past experience with these popular products, how, why and where they can still be found and who might benefit from using one.  For example, most of us refinanced our homes somewhere before or after the “Great Recession” to take advantage of incredibly low, fixed rate loans.  We did this to take the risk out of potential rises in our loan costs (particularly those of us that had risky “high cap” loans that could soar someday into double digits).  But did we actually come out ahead?  We removed the risk but may (in fact) may have paid MORE over the last few years for these fixed rate loans, particularly since the indexes on which they were based (like LIBOR) also remained so low. ARM yourself with some amazing facts about adjustable rate mortgages on this week’s installment of OC HOUSING CONNECTION and see how you fared here on Orange County’s only community radio station, www.OCTalkRadio.net.

 

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