I bought my first house under a 7 year ARM loan. I later converted this house to Rental and bought a second house. I wasn't able to refinance my first house when the rates were cheap as I need to take a different loan (since it became an investment property). The ARM expired and interest shot up from 3% to 6%. Now it is coming up for annual renewal and it will shoot up to 8%. This will reduce rental income and I am getting very close to 0 profit on this property.
Glad humanity learned its lesson from 2008.
Never ARM for long term
Historically arms have been better than 30 year fixed. It wasn’t until recently that it became worse.
Yeah but when interest rate is at historic lows you lock that shit in. ARM maybe better in the long run but in the long run everyone would be dead too
You gambled, you lost
How old were you in 2007? Seriously this is like absolutely amateur shit to anyone who has ever read into the Great Recession. 30 fixed rates were astonishingly low for years and you didn’t refi or just get a 30 fixed to start with? I have so many questions
you do realize that in canada, over half the population is on fully variable rate mortgages right? nobody does fixed rate up there as it never makes sense
You do realize their interest rates are like 3 points below americans? Like they were paying 1%, now probably 3.5%?
Just refinance later when the rate drops
Uhm...sell maybe? You know people sell real estate all the time too.
Wow, that's some weapons-grade stupidity
How is this ARM's fault. Wait a year, then rates would be down.,
Bad planning, greedy, short sightedness. These are some adjectives that come to my mind
velvetty, smooth, prickly. these are some adjectives i was recently thinking about. This game is fun!
Ooh oooh oohhh, do me next!