When we sold our house, the woman that bought it got one of those ARM loans. I felt sorry for her because I don't think she really knew what she was getting into.<br><br>When we looked at houses, our goal was to get one that was easily affordable because we didn't want to work for our houses...we wanted to travel!<br><br>my beer blog
"our goal was to get one that was easily affordable because we didn't want to work for our houses...we wanted to travel!"<br><br>Geez, are you ever smart. I was like that. Being a slave to your home for the rest of your life sure can't be any joy. One day those people will wake up and realize life has passed them by and they haven't really lived. There IS more to life than collecting "stuff". Why do folks get in over their heads for something that means little in the long run? I grew up in a small home with 4 kids and one bathroom. These days I've seen some folks go up to their eyeballs in debt so they can have a bathroom each. Not only that but they have the best furniture and the biggest TV's. Just sad.<br><br><br><br>
Thanks. Yeah, we could have gotten bigger but why? We have just about everything we need in this house.<br><br>I have been in some nice big houses that were basically empty because they couldn't afford all the furniture! All because they want to look good in the eyes of their friends. <br><br>my beer blog
Loc: Sydney, Down Under
Apologies for going off topic...<br><br>I don't know what your ARM loans are (something to do with an arm and a leg? ) but I just think it is plain crazy and stupid that some loan providers here are offering 100% loans i.e. they lend you the 100% value of the property. It used to be that you could borrow a maximum of 80% of the value of the property.<br><br>Our Reserve Bank has just raised the official interest rate by .25% and there is much talk about a significant rise in loan defaulters. Seriously!!! We are only on about 6.5% to 7.5% interest and this is happening?!?! Many years ago we hit rates of 16-17% and families somehow survived.<br><br>
ARM is Adjustable Rate Mortgage. A loan that for say 3 years stays really low, lower than the prime rate I think, then it adjusts to the market rate. I think. I am not positive on the definition but it basically goes up based on the market. <br><br>Someone correct me if I'm wrong.<br><br>my beer blog
Little Sister makes a good argument for never owning a house. Besides the obvious upkeep, + insurance, taxes, interest, at the end of the day, what do you have? Some equity, but most people are still carrying the debt. Balanced against renting over 20-30 years . . . wish she was here, she can do the math better than me. And she's owned a couple of times, so she's got her rationale.<br><br>Thank the stars I married a really smart guy. He handles the heavy lifting when it comes to major finance decisions and our house payment is so low y'all would spill your coffee.<br><br><br><br><br><br>[color:blue]Just push play ~ They're gonna bleep it anyway ~ </font color=blue><br><br>
_________________________ I always deserve it. Really.
ARMs fluctuate with the interest rate--not prime, but whatever the going rate is at the time. The period for readjustment varies from loan to loan. In some cases the adjustment takes place annually, in some other cases it takes place every two or three years. You're really betting that the Fed won't raise interest rates if you do one of these. But then for a fixed rate you're actually betting that the Fed won't lower them. There's no sure thing <br><br>
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