Good article. But did it bother anyone else that their discussion about the advantages of an ARM conveniently didn't mention anything about what could happen to the monthly payment once rates adjust? That was part of the problem for so many people during the last market boom. They chose an ARM to get a rate that would allow them to get a foot in the door, believing (and often being told by their LOs) that they could always refi again later when their fixed period was over or if rates went up. And of course, as we know, the recession hit, a great many found themselves under water, they weren't able to qualify for that refi, and they ended up in foreclosure.
Also, the securitizing of mortgage loans that many believe was at the heart of the crash is apparently still going on, even though they've made some cosmetic changes. I guess people never learn... |