ARMs do not necessarily present more risk than fixedrate loans

For many people, ARMs excite fears of potential loss. If interest rates head up, you stand to lose a lot of money as your monthly payments climb above the payments that you would have made with a 30-year, fixed-rate mortgage. Or you view the ARM risk in terms of uncertainty; you wonder if you can afford the higher payments. You fear that rate hikes might wreck your budget—or even force you to quickly sell the property.

You know what? More than likely, you've exaggerated the risks and misinterpreted the facts.

0 0

Post a comment