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To: ex-Texan

Anybody who still has an ARM in the present environment of unbelievably low fixed rate mortgages deserves what they get. There is no excuse.


29 posted on 11/20/2005 2:37:16 PM PST by Lancey Howard
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To: Lancey Howard

In the past 25 years, someone taking a variable rate loan has not had to pay a rate higher than he would have under the fixed rate at the time he took the loan.

There is a premium paid for the security and the market prices the fixed rates above the expected future variable rates.

In other words, fixed rates are for suckers.


32 posted on 11/20/2005 2:47:54 PM PST by Raycpa
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To: Lancey Howard
Anybody who still has an ARM in the present environment of unbelievably low fixed rate mortgages deserves what they get.

Although it is a "get property quick" route, for those who need it initially, anyone who doesn't refinance to a fixed when they can afford it do deserve what they get.

I recall when I bought my first property at 12.5% and although I was shaken by the mortgage company to go with a variable, I went with the fixed and 4 years later made a killing on an assumable when selling.

Even at 12.5% at least I knew I could afford it up front and sold the property after Jimma' left office and took advantage of the lower rates in the eighties on a fixed to buy again.

The market is fine now, the mindset of buyers however may be an issue that can be used to make the market appear to be less than desirable.

42 posted on 11/20/2005 3:17:40 PM PST by EGPWS
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