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loans are underwritten based on both the intrinsic value of the house and your ability to repay. You can't predict that second one years in advance. You can g
by gbronner 4y ago
loans are underwritten based on both the intrinsic value of the house and your ability to repay. You can't predict that second one years in advance.
You can get a floating rate loan, however, it if you want your payments to follow the market.
- Sohcahtoa82 4y ago> You can get a floating rate loan, however, it if you want your payments to follow the market. And then 2008 happens again, your rate goes up 5+%, your payments skyrocket, and you can't afford them and you lose your home. I think you gotta be crazy to get an ARM.
- Christophy 4y agoARMs also exist with a capped rate (eg max x2 or x1.5), then they can present an acceptable risk.