4 ms·
Ah, makes sense. Low rates, you want fixed. High rates, you want variable. I just don't understand how the bank puts up with it.
by galdosdi 5y ago
Ah, makes sense. Low rates, you want fixed. High rates, you want variable. I just don't understand how the bank puts up with it.
- dragonwriter 5y agoMost of the ARMs were sold with very little downward adjustability. With rates at historic highs, the ones I was seeing when mortgage shopping in 2006ish consistently had wide open upward adjustment and one 0.25% step available of downward adjustment to their minimim rate from the initial rate. The bank wasn't taking much risk on the adjustable rate.
- galdosdi 5y agoI mean the risk the banks take today offering a fixed 30 year note at a very low rate, if there is significant inflation or rate increases anytime soon. It seems like a very good deal for the buyer right now and for the last decade.