The prudent thing at first appeared to be to use a 30 year fixed to finance a home. Now we are seeing how risk taking is going to be rewarded. For many borrower they are going to substancially benefit if by the time of reset interest rates ahve fallen back to their previous teaser rates. The spread between the reasonable fixed rates vs. the unprecedently low teaser rate means that those who took the risk save a ton of dough over the last 3 to 5 years. Can anyone argue against this?
