Talk:Adjustable rate mortgage
From Wikipedia, the free encyclopedia
 |
This article is within the scope of Business and Economics WikiProject. |
| A | rated as a-Class on the assessment scale |
| Mid | rated as mid-importance on the assessment scale |
Merge with mortgage article? (FRM) --Rj 05:34, Apr 4, 2004 (UTC) this is a test
Where does the 28 come in on the 2/28 hybrid ARM example? --Dbollard99 02:43, Jan 15, 2006
If you have a 2/28 you have 2 years of fixed payment rates. Your loan doesnt become an adjustable rate mortgage until the end of 2 years. At which point you have 28 years left of adjustable interest rates on a 30 year loan term.
There are several egregious errors on this page first....
Understanding Caps
-SNIP- What's better? - The lower these numbers are, the better for you, especially, the first number.
Examples: 2/2/5 ; 5/2/5 ; 2/1/6 ; 3/1/6 ; 2/4 ; 1/1/5 .
This assumes rising interest rates. In a declining interest rate market a smaller periodic cap is preferable. Fortunately for consumers interest rates are not always increasing.
Secondly, HELOCS are not DESIGNED to be in the 2nd position. Most lenders ALLOW them to be placed in the 2nd or 3rd position however, ALL lenders would prefer to have any HELOC they have provided to a consumer to be in the first position thus minimizing their exposure to risk.
Thirdly, you dont Purchase a loan. You obtain financing. You acquire a debt, but you do not PURCHASE a loan. (unless you are a debt servicer).
Fourthly, the tone of this article in general screams lawsuit.
Fifthly at the end of the article... [QUOTE] Sadly, most people do not take the time to learn about their ARM product, and some people even take these loans out as their First Lien loan, putting their house in jeopardy of foreclosure if there is an inflationary market. [/QUOTE] This is just an idiotic statement. Not only are all consumers malinformed but anyone that owns their home outright that takes out a $25k HELOC is in danger of losing their home.... OH NOOOOOOOOO!!!
when this article says "these days" such as:
expressed as a maximum rate, usually 9.95% or 10.95% these days
shouldn't there be a year or range of year attached to the 'these days", like: those days (2006). This statement wouldn't be "true" at a different time ?
Roosurn 15:22, 7 August 2006 (UTC)
[edit] Merge with Mortgage?
I do not think a merge would be good. There are many types of Mortgages, and these are linked to in the Mortgage page. This is a special type of mortgage worthy of it's own page. IMO, of course. CodeCarpenter 20:28, 22 January 2007 (UTC)
