11-13-2008, 09:34 AM
No, ARMs do have their place. They're good if rates are high and on the brink of declining. They're good if your business is real estate investing, and you're going to flip the property in a reasonably quick timeframe. There are circumstances when an ARM can benefit you, but like anything, you've got to be smart about it and take not just a risk, but a CALCULATED risk.
If you carry a 30 year ARM for more than a few years, you're going to get screwed. No ifs, ands or buts.
If you carry a 30 year ARM for more than a few years, you're going to get screwed. No ifs, ands or buts.