Adjustable rate mortgages or ARM’s have been around since the early 80’s and until the recent economic meltdown and the tsunami of foreclosures it generated were a product that allowed some people who otherwise might not have been able to afford a home to realize the “American Dream” of home ownership. Unfortunately, for too many the “Dream” became a nightmare as un-employment rose, wages stagnated and property values plummeted. Through the entire finger pointing, it soon became apparent there was plenty of blame to go around. Unscrupulous lenders, overly optimistic buyers who were going to be able to handle the adjustments to their Adjustable Rate Mortgage with wage increases that didn’t come and so on.

The problem wasn’t the product however, despite the fact that ARM’s in some circles have all the attractiveness as a skunk at a lawn party. An adjustable rate mortgage put to sensible use can still do what it was intended to do, allow people to buy the house that they want rather than settling for what their present situation allows. For example, if you were interested in a starter home that you did not intend to stay in for more than 5 years an ARM which made its first adjustment at that time might just provide a low enough interest rate to make the payments affordable. Look at ARM rates and you will see what I mean. They are often a full percentage point lower than a fixed rate mortgage and provided you negotiate the terms correctly can give you a real advantage. At LoanexFastCash.com we can give you access to the lenders with the expertise to show you how an ARM can work for you.

The devil, as the saying goes, is in the details. The terms of an Adjustable Rate Mortgage, the frequency and the number of times that it may be adjusted are some of the reasons that so many people who had ARM’s found themselves in the position of having their payments take huge increases just as they began to struggle with diminishing employment, wage cuts, and rising costs. If you use the adjustable rate mortgage in a carefully thought out plan it can leverage you into a more appealing home than you otherwise might have been able to afford.