> On Sep 19, 12:41 pm, Paul gmail.com> wrote:
>

>> I'm not trying to blame the consumer. A lot of people were taken
>> advantage of when buying homes and all that.

>

>> My wife and I bought our first home in November at a Fixed rate. We're
>> not financial geniuses, but we know enough not to get into something
>> that doesn't make sense.

>

>> But apparently a LOT of people bought homes with adjustable rate
>> mortgages. I mean, when I was in my early twenties, one of the first
>> things I was taught was you NEVER buy adjustable rate. It's the worst
>> thing you could do was all I ever heard.

>
> Nonsense. Adjustable rates are perfectly legitimate under the right
> circumstances. When I first bought my house, I used an adjustable
> right and saved thousands of dollars. I even re-financed to get a
> lower adjustable rate and saved thousands more.
>
> When I realized I was going to be here longer than I had originally
> planned, I locked into a fixed rate.
>
> The difference is that I bought less house than I really could have
> afforded, because a) I don't need a McMansion b) Bad things can happen
> and I planned for the worst and c) That money was better served in
> other places.
>
> I bought a house that I could still afford even if my mortgage rate
> went up 2 points.
>
> Adjustable rates aren't stupid, people are. Actually, they're not
> stupid, they're just ignorant/uneducated.