With all of the increasing prices of housing and clever techniques of acquiring a mortgage, paying the high price of mortgages are being delayed. There are new adjustable rate mortgages that keep monthly payments low in the beginning and eventually the payments will rise higher in the future. The problem that I see is that people are not going to prepare themselves for the future increase. When the mortgage increases, they will try to refinance and might not be able to. Then they will be dealing with the threat of foreclosure looming over their heads. I am not a fan of people doing ARMs primarily because most people are not fully educated on what all the consequences are of doing an ARM. Take your time and decide is it really worth the delayed pain if you are going to end up without a house!
