dimpy.handa
Dimpy Handa
What do you all think about Arm mortgages, such as the 5 yr etc.? Are they still an effective tool for those who use them responsibly? Do you think they have a bad rap now and most people have become aware of what they actually are and what they entail as far as paying on the loan etc.? Do you think we will continue seeing less ARMs and perhaps more conventional loans when it comes to home purchasing?
Whereas I do not like them as a borrower, and I do not recommend them in general or in this environment, it is not up to me to decide whether they are in the best interest of each individual borrower in every circumstance. If interests rates are high and likely to go down, and the initial rate is sufficiently low in comparison to fixed rate mortgages; if the borrower is willing to borrow based on his assessment of the present discount to the fixed rate and his assessment of future interest rates, and the lender is willing to lend based on his own assessment, then I as a third party should have no say in the matter, unless of course the government is going to come in and demand I prop up either or both should either or both miscalculate.
Whereas I do not like them as a borrower, and I do not recommend them in general or in this environment, it is not up to me to decide whether they are in the best interest of each individual borrower in every circumstance. If interests rates are high and likely to go down, and the initial rate is sufficiently low in comparison to fixed rate mortgages; if the borrower is willing to borrow based on his assessment of the present discount to the fixed rate and his assessment of future interest rates, and the lender is willing to lend based on his own assessment, then I as a third party should have no say in the matter, unless of course the government is going to come in and demand I prop up either or both should either or both miscalculate.