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Personal Finances / Buying or Selling a Home


Subject:  Re: Fence-sitting Date:  8/3/2014  7:45 PM
Author:  valueqwest Number:  127274 of 129163

Wha…?! You mean the exact strategy I espoused on this very board--"borrow short/pay long"--worked well for you? Stop the presses and tell Rayvt who got his kicks from raking me over the coals for advising the strategy that has worked well for you.

Uh, no. It was a 5 year ARM. I got it because I had a 5 year horizon at that time. I think the prevailing logic here sometime after that was to get an ARM because a very small percentage of mortgages remain in place more than 7-8 years. I do not see that statistic as very useful, since it is so interest-rate dependent, as we have seen.

Course a lot of people that followed that logic and got more exotic ARMS also did not keep them in place-they were foreclosed on.

But I do thank you for that insight.

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