Quote:
Originally Posted by Buehler445
8% is a hell of a lot more than I anticipated.
I guess right now I wouldn't feel too bad about an ARM. Save fees for a refinance.
But my ass would have to buy a shoebox in a gutter if I were going to give up my mortgage today.
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I guess an ARM is a good strategy if you know that rates are going to go down. You usually don't know that, but right now? Rates are going to go down. The Fed is committed to that outcome. So an ARM would be a good plan, I think.
When I bought my house, I got a fixed rate that was over 7 percent. Rates kept going down and I kept refinancing. I think I was paying at or under 3 percent when I finally paid the house off. Maybe I should have done ARMs for 20 years. But I didn't know that we would have 20 years of declines.
At some point I got a HELOC at some ridiculously low rate, and that's what I used for my last big rehab project on the house (redoing the kitchen, adding a deck, finishing off the third floor, etc.) I think it might have been under 2 percent, so I paid off the main mortgage before I paid that one off. At some point the lender stopped offering it, and that was a sad day.