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"Any one asking for an ARM is a fool. That's the way to certain foreclosure. An ARM makes sense if you have a steady income and you intend to live in a home only a few years. But if this your home for life, a traditional 30 year fixed is always the safer option. I suspect if they had taken a 30 year fixed, they wouldn't be facing foreclosure now."

Depending on the research you read, the average American lives in their home 7 yrs and in their mortgage 5 years. For those that aren't living in their "forever" home, ARMS can make a lot of sense. The issue isn't the type of loan, it's the loan amount, lack of down payment, living beyond their means.

Just what I said. If you don't intend to stay in a house for a long, its better to just pay the interest until it comes time to sell it and move again. Only if you're sure this is the home you really want to keep, go the traditional route. And make sure that after you take into account the loan and upkeep expenses, you have cash on hand for living expenses through the month.

"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