Should I get a loan with an adjustable rate? By: Betty Westerlund, Virginia Realtor

athomeinva Skip to content Home About Forclosure Short Sale Northern Virginia April 3, 2011 Should I get a loan with an adjustable rate? By: Betty Westerlund, Virginia Realtor The idea of borrowing money is not a new phenomenon.  You will pay to borrow.  Based on your credit and history of repayment, your interest rate will be calculated accordingly.  You may already have an ARM or are thinking about obtaining one.  Bu what is the specific history of adjustable rate mortgages?  When were they first used? And Why? Adjustable rate mortgages (ARM’s as they are often called) spawned in the early 1980s when rates were as high as 18% (although unthinkable today, my parents were excited to get an interest rate of 12% in 1985) and lenders were trying to come up with affordable loan products.  Among graduated payment plans and different equity loans, the adjustable rate mortgage turned the most popular and became a common mortgage product rather than a temporary paradigm. The... [Read more...]