I was talking to friend of mine last night who bought in 2002. He said his broker called him a fool for not taking an ARM.
He opted for a 20-year fixed, despite the criticism.
I’m still amazed at how foolish people on both sides of the mortgage have been. With brokers like that, you can see how even somewhat informed people could make a bad choice.
This housing crash is going to tarnish the idea of ARMs and Interest only loans for years to come.
