I’d just like to chime in on the ARM loan discussion. We too have an ARM, a ten-year one (resetting in 2014), and we will not be in any danger of foreclosure in the coming years. We had a 30-year fixed on the same house and refinanced into the ten-year ARM. At a purchase price of roughly 2.5 times income, we’re doing just fine. While I agree that there are certainly a number of people out there who used ARMs to get into houses that they couldn’t otherwise afford, there are also quite a few out there like me who selected an ARM for other reasons. I have plenty of friends that either purchased with an ARM or refinanced into an ARM despite the fact that they qualified for a 30-year fixed.
