Would a 5 or 7 yr ARM make sense to lower the payments? Then it would be affordable...(I did the math..)..My question is...does this make sense in the long run..or rather in the 5-7 yr. run? I should mention that I will be retiring in about 6 yrs. I should also mention that it's near the ocean and will probably go way up in value.
2007-03-23 23:56:46 · 2 answers · asked by Mandy 1 in Business & Finance ➔ Renting & Real Estate
ARMs are scary to me, since you don't know what they are going to do. 3 years after my parents neighborhood was built, homes were going up for sale and being foreclosed on by the dozens because everybody's payments went up. (taxes go up also with an increase in value)
If you get one with a 5 year fixed term (if they have them, idk), and then sell after 5 years you might be okay, but it probably has a pre-payment penalty. It's probably not wise to have a mortgage that could go up if you are living that close to the ends of your means ya know?
2007-03-24 03:07:54 · answer #1 · answered by ? 5 · 0⤊ 0⤋
My mother got burned on an ARM don't do it, she bought her house for $65,000 and just to break even with the finance charges on it, because of the ARM she had to sell it for $75,000, she only sold it for $73,000................Stay away from ARM's all together, they look good on the surface, but they are horrible in the long run
2007-03-27 17:45:47 · answer #2 · answered by RitaL32 1 · 0⤊ 0⤋