Getting an Adjustable Rate Mortgage (ARM) is not recommended today. However, if you have one, it’s not necessarily a bad thing. Wth interest rates remaining so low, some ARM’s are resetting to a lower rate. We’re not hearing people complain about lower mortgage payments!
If the trend continues, 2010 may prove to be pretty good year for the housing industry. Maybe having an ARM right now will give the homeowner with insight a little time to plan for the future.
I’m not an economist, but from what I’ve been reading, 2011 and 2012 may be of more concern. So, unless you plan to stay in your home for the next five or more years, now would be a good time to consider selling. I predict interest rates will soar way before housing values rebound. You don’t want to be caught in that ARM when they do.
