Just a quick comment from a non-US immigrant, I think the opposite holds true. I’m from England where ARMs are the norm and there’s no such thing as a fixed rate mortgage (at least when I bought 15 years ago). So as a buyer, you are aware from the start that mortgage payments could go up or down. Another consideration, after watching the housing bust of the late 1980s/early 1990s in the UK, is that you can’t just walk away from your mortgage in England. Sure you can hand the keys back but the gesture is meaningless and the debt still stands. It seems in the US, you can mortgage yourself to the max, then just walk away when things get rough and owe nothing. The only consequence is a bad credit report. THIS is what creates a profligate attitude to risk.
