I was just watching on the news that millions of peoples mortgages are going to almost double because of the kinds of loans they took out. Is this going to happen to you or anyone you know?

We have a fixed rate mortgage so we should be fine. Hopefully this won't happen to anyone we know. It could really hurt some of our relatives if this happens (I don't know how they have set up their mortgages).

__________________

Not us, but I guess some people were not prudent and took adjustable rate mortgages. My parents refinanced their Florida house six years ago when rates were really low and got an ARM. Their mortgage was about $300 a month on a house they sold for over $400,000. BUT they knew they would be retiring last year a year before the ARM switched to fixed. They were able to sell their house in a month (a great area so not surprising) and saved a lot of money by doing it.

It can be a great tool if used correctly.

Not us, because our rate is fixed, but it has hurt our neighborhood a lot, we have a ton of foreclosures. Luckily our street is fine (I hope because our lots were more expensive) , but the one behind us looks horrible because people who knew they were getting forclosed on have let there houses go. I just hope people will buy them cheap and then fix them up.

A friend of mine did an arm on her townhouse because they "knew" they would be buying a house before it was up. While they ended up gettin divorced and she kept the townhouse, but had to refinance to get a fixed rate and she would have been better off doing the fixed rate from the start.

We have fixed- thank goodness! My inlaws had an "arm" mortgage on their second mortgage and it was getting really tough for them. They did something though (it is slipping my mind though!) were I guess they shopped a different mortgage company and they were able to pay off the first mortgage and the 2nd one became fixed.

I also have a friend who recently changed hers into a fixed one as well. With her DH gone now (he passed away 2 years ago) the mortgage was getting too high for her to pay. At least she was able to get it fixed before she had it foreclosed!

The first house we bought we bought with an ARM. We learned our lesson and quickly switched to a fixed rate. We have never considered an ARM again!!!

__________________
~Happiness is a large family~

No we have a fixed rate. They only people this will happen to are those with adjustable rate mortgages. I would NEVER get one of those just because of this...you don't know how high it could go. Hopefully those people will be able to refinance to a fixed rate.

__________________

No we have a fixed rate of 5.5% I wish it would go lower so we could refinance again, but that probably won't happen for a while

__________________
Austin
Mom to 3 beautiful girls

I think many who take out an ARM really don't know what it means. I am glad we did our research and got a fixed rate.

__________________
Kimberly Proud Mommy to Bethany Rose April 2006

Mine is a fixed rate, thank God! I don't know of anyone personally, except for a friend at work had one last year and was able to refinance..