Quote:
Originally Posted by AGDee
I should also note, with mortgage rates what they are now, it's silly to get an ARM because it can go nowhere but up. Unless the LIBOR was 0, mine is currently as low as it can possibly go. When the rate was 8.75% (when I bought it), it was a good risk. I'm trying to pay down a lot of extra principle while rates are this low because then if they do go back up again, I won't be paying interest on as much principle.
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I agree.
Yet, people are still enticed by the (even slightly) lower rate of particular ARMs. This topic has come up more and more and I've been reading more on the subprime mortgage crisis. It's sad. I think a lot of people are still in favor of ARMs at face value and regardless of the details. This has a substantial impact on the "middle class" and disproportionately impacts homebuyers who are racial and ethnic minorities.
Interesting article:
http://www.businessinsider.com/don-b...-market-2011-6
Quote:
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Originally Posted by Munchkin03
I have a lot more to say about this, which will have to wait--mainly about the pressure that affluent blacks receive from family and friends to buy a house right away after finishing college or graduate school, by any means necessary. For so many people, homeownership is the American Dream fulfilled and this yearning may be even stronger for blacks and Hispanics. The hysteria of the mid-aughts increased that since people were afraid of "being priced out."
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Calling Munchkin03 to the dancefloor. LOL.
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