>>>>>>>>>>>I don't know what a heck are you talking about. Nobody takes fixed rate installments. Unless you are ex-con or something and bank would not loan you otherwise. Last time I had one was in 1997 , banks don't even offer them any more I thing.
>>>>>>>>>>>
>>>>>>>>>>>Yeah, It is all Obama's fault!
>>>>>>>>>>>If it is not Obama then it is sure Europe fault!
>>>>>>>>>>>If none works, then try Al-qaeda.
>>>>>>>>>>>
>>>>>>>>>>>Stay perplexed.
>>>>>>>>>>
>>>>>>>>>>Laying blames is exclusively your business so don't peddle it around. FYI, great majority of US homeowners take fixed-rate mortgages.
>>>>>>>>>
>>>>>>>>>Wouldn't buy a house without one. I remember the 'negative amortization' loan debacle of the 80's.
>>>>>>>>
>>>>>>>>I have what is called up here, a 'variable rate' mortgage. I don't know if that's the same thing as your 'adjustable rate' mortgage, but it's worked out beautifully for me. I came off a fixed rate of about 6% when I changed to variable rate. When I changed, I decided to continue to pay the same monthly amount as I was paying - in other words pretending I still was at 6%. That was about 6 years ago, and at no time since has the variable rate come anywhere near 6% so in fact, I've been paying off my mortgage very quickly. Right now my rate is about 3.75% while I'm paying as though it's 6%. If I'd taken a fixed rate mortgage at that time, I'd be waaaay behind where I am now.
>>>>>>>
>>>>>>>The ARM is the problem here. The adjustable rate mortgage starts out with low interest rates (to help new buyers with lower incomes who expect to earn more later). The interest rates climb over the life of the loan though. If you aren't making more money later in life when the rates go up, that is a problem.
>>>>>>>
>>>>>>>Baloon loans are another problem. You finance a portion and pay a 'baloon payment' at the end in order to keep the payments down. When the baloon payment comes due if you cannot pay it, you have to refinance the balance.
>>>>>>>
>>>>>>>I always go with a fixed rate. I like the guarantee that the payment will always remain the same.
>>>>>>
>>>>>>In fact ARM rates do not necessarily climb over the life of the loan. I have had a number of ARMs and have refinanced every one of them for a lower rate. That's very easy to do when market rates are falling.
>>>>>
>>>>>What is interesting is that the higher percentage rates that occurred and caused so much trouble recently were nothing like the higher percentage rates in years gone past. Does anyone recall when the fed's short-term interest rate target topped 19% in 1981 to 1%?
>>>>>
>>>>>Look at the mortgage rates of 1983:
>>>>>
>>>>>http://www.hsh.com/natmo83.html
>>>>>
>>>>>Then look at 2008:
>>>>>
>>>>>http://www.hsh.com/natmo2008.html
>>>>>
>>>>>It's a shame there wasn't a page for 1980 and 1981 to show...
>>>>
>>>>Yes, I do remember the interest rates in the late 70s and early 80s. It's one of the reasons Ford and Carter were one term Presidents ;-)
>>>
>>>It's the memory of those rates which cause many to lean toward fixed rate mortgages when the fixed rate is pretty low....
>>
>>Undoubtedly so. As I just said to Alan, I used to feel that way, too. But in the past 10 years or so ARMs have been a better deal.
>
>Just wanted to note, hope you have a GOOD day today Mike. :o)

I will.