On Sep 19, 1:48Â pm, Shrikeb...@
gmail.com wrote:
> On Sep 19, 10:27Â am, ta
nc.rr.com> wrote:
>
>
>>> On Sep 19, 12:41Â 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.
>
> From my perspective, I was buying in an era
> of historically low interest rates, so I was
> expecting them to go up and locked a low
> fixed rate then.
Yeah, same here, but initially I wasn't expecting to be there for very
long, so an ARM made more sense. Why would I pay up to 1%% more on my
loan if I was going to move within the window of my ARM?
