No. of Recommendations: 8
With interest rates at historic lows, it is hard to argue they will go much lower. Hence, getting a 30 yr fixed rate mortgage sounds like a no brainer. You lock in that rate for a long time.

Of course lenders would much prefer to give you an ARM, because they have every reason to believe rates will be higher for most of that 30 yr period. They react by raising downpayment and credit score requirements--essentially to cut lending to a minimum while rates are low.

Of course news releases to convince people to consider ARMs as a better deal are part of the game. But I doubt anyone with the smarts to get a decent credit score will buy into that sales pitch.
Print the post  

Announcements

Useful Resources
Our Home Center has all you need to make buying and owning a home a great experience. Get or refinance a mortgage and much more!
Buying/Selling a Home FAQ

Mortgage Professor
Offsite resource for mortgage questions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement