Quote:
Originally Posted by classicman
Whats wrong with a 5 yr arm if you are planning to move in less than that amount of time. I realize there is some risk inherent in that, but that is what they were essentially designed for ...no?
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ARMs were designed to give you a house that you otherwise had no business owning. What made possible those 4000+ square foot houses with three car garages? A more productive America? Of course not. Variable rate mortgages, NINJA, and the ponzi scheme found in Enron style accounting.
Let's see. All those homeowners, expecting to be there only five years, suddenly got stuck with what? Suddenly they can't move? Economics takes revenge many years later on an economy that plays such money games.