PropertyProf Blog

Editor: Stephen Clowney
Univ. of Arkansas, Fayetteville

Monday, March 21, 2011

The Rise of ARMs

The New York Times reports that more borrowers are opting for adjustable rate mortgages:

In the years since the financial crisis, adjustable-rae mortgages, or ARMs, with their low initial interest rates that changed over time, have been considered riskier than fixed-rate loans and shunned by most buyers. But these days more people are being persuaded to give the loans a try.

Mortgage brokers and lenders say the loans most in demand are the “5/1” and “7/1,” in which the initial interest rate is fixed for the first five or seven years — after which many homeowners typically think about selling or refinancing anyway — then adjusted annually at a capped rate toward a maximum level.

Steve Clowney

[Comments are held for approval, so there will be some delay in posting]

Mortgage Crisis | Permalink

TrackBack URL for this entry:

Listed below are links to weblogs that reference The Rise of ARMs:


Post a comment