Re: Good Article
Yeah, I was wondering what the heck Al was smoking when he told everyone to go get ARM's. In a very stable interest rate environment that makes some sense because you'll get a reduction on the initial rate, and if things are stable, that should hold out for the first 4-6 crucial payment years when your payments are 90-something percent interest.
Makes absolutely no sense now, with rates at an all time low and anything BUT stability on the horizon. THAT'S when you want to lock in a fixed rate.
Be fearful when others are greedy, and greedy when others are fearful. Just another form of "buy low, sell high" for those who have trouble with things. This rule is not universal. Do not buy a 1973 Pinto because everyone else is afraid of it.