ARM went down!

[parsoc48]

Wanted to share some good news...our ARM readjusts 7/01 and we expected at least a small increase, ....and it turns out to be $78 less!!! It won't make or break us, but it's something we can put aside each month, since we'd be paying it anyway.

[Flamingo]

You can thank the feds for lowering the rate as it has done several times already for that nice break. Those also with home equity lines are getting a nice breather on interest. But eventually they will climb back up so be prepared for the increase when it hits.

[parsoc48]

Yes, I know they'll go up...but maybe slowly? But right now I'm just enjoying the moment!

[chloe0724]

Par,

Your ARM should lock for a period of time, like 6 months or a year. So you will not be subject to your rate changing for that period of time.

Mines due to adjust in Sept, and I think it will either be the same or a little lower becuase of the rates.

Enjoy your windfall!!!

[parsoc48]

Yes, it's only for 6 months, then the anxiety starts again! But that's ok, I'll enjoy it while I have it.

[MajorMike]

ugggh, I'd die if I had an ARM!!! So glad people were nice enough years ago to tell us NEVER to get one!

[chloe0724]

Hind sight's the best Major. Everyone kept saying, don't worry, in five years you'll make more and the house will be worth more and you can refinace. We'll the house is worth less now than what we bought it for and can't refi, yes I'm making more money, but it's being eaten up by gas & food.

I will never do an ARM again.

[jerzey]

Wanted to share some good news...our ARM readjusts 7/01 and we expected at least a small increase, ....and it turns out to be $78 less!!! It won't make or break us, but it's something we can put aside each month, since we'd be paying it anyway.

what Index are we talking about?

[parsoc48]

what Index are we talking about?

LIBOR

I'd die if I had an ARM

No you wouldn't MM, you'd just get through it like the rest of us!

[Stilltheone]

Wanted to share some good news...our ARM readjusts 7/01 and we expected at least a small increase, ....and it turns out to be $78 less!!! It won't make or break us, but it's something we can put aside each month, since we'd be paying it anyway.

We've had an adjustable mortgage for the last 2 years on our home equity line.....payment was originally $700....the last 4 months, our payment hasn't been over $500. It's been awesome.

Unfortunately, some people can only purchase homes with an ARM loan....Not everyone can be as as Major Mike.

[MajorMike]

I didn't say I was an Angel....but an ARM is the kiss of death. It's like going into a casino, laying your life savings down and rolling.....
At least with a locked in rate, you know what you're paying at all times. Even though someone tells me what it will be like in 5 years, there is no way to tell. It's sad that these companies get away with this. How can you qualify for an ARM and not a regular mortgage? I thought an ARM was a choice.

[Stilltheone]

I didn't say I was an Angel....but an ARM is the kiss of death. It's like going into a casino, laying your life savings down and rolling.....
At least with a locked in rate, you know what you're paying at all times. Even though someone tells me what it will be like in 5 years, there is no way to tell. It's sad that these companies get away with this. How can you qualify for an ARM and not a regular mortgage? I thought an ARM was a choice.

Because with an ARM, your payment is lower.

I don't know, personally, I would much rather be living in MY OWN HOME with an ARM mortgage than still living in my parent's living room and dining room and waiting to qualify for a "regular mortgage"...That's just me.

[jerzey]

here a chart of the Libors




Jan 2008 3.9772 3.9945 3.8548 3.5091
Feb 2008 3.1393 3.0912 3.0112 2.8140
Mar 2008 2.8069 2.7833 2.6815 2.5124
Apr 2008 2.7809 2.7873 2.8227 2.8019
May 2008 2.5315 2.7041 2.8591 3.0270

you can see some Libors are dropping

[MajorMike]

Because with an ARM, your payment is lower.

I don't know, personally, I would much rather be living in MY OWN HOME with an ARM mortgage than still living in my parent's living room and dining room and waiting to qualify for a "regular mortgage"...That's just me.

Why wouldn't you qualify? That's what I don't understand. Is it because of the interest rate?
What is the interest rate difference compared to a conventional?

[Stilltheone]

Why wouldn't you qualify? That's what I don't understand. Is it because of the interest rate?
What is the interest rate difference compared to a conventional?

When we purchased our home, we got an ARM....interest only. Maybe that's what is confusing you. The difference between a regular loan and our interest only arm was a couple hundred dollars. At the time, our debt to income ratio was a mess, so we could only qualify with an interest only arm.