Question:
“What do you think about getting an adjustable rate mortgage?”
Answer:
I’ll let Dave Ramsey answer this one from an email his organization sent me:
“ARMs hook homebuyers with a low initial rate, then, after a designated period, the rate fluctuates for the remainder of the life of the loan. This kind of loan actually transfers the risk of rising interest rates to you, the homeowner. Right now, interest rates are incredibly low, and they have been for some time. But once rates start to adjust, there’s only one direction they can go: up! This risk makes an ARM one of the worst mortgage options available. Do not finance your home with an ARM.”
