Posted on
November 30, 2007
at
6:18 pm
Called ARMs for short, these mortgages were great for people who did not plan on staying in their home for more than three to fiveyears. It gave them a low payment and a chance to build equity. Unfortunately, some lenders found a way to pervert a perfectly good product and almost destroy the market. Yes, ARMs are a big reason why the foreclosures are skyrocketing but the product shouldn't be blamed, the mortage brokers should. The brokers never fully explained the index to which the ARM was tied so the borrower didn't know the volatility of that index. When the **** hit the fan, the homeowner only saw that his payment jumped $300, $500 or more dollars per month. I'd gone buggy too if that happened to me. I've used ARMs in my real estate investing business as well as on my personal residence. You have to understand the terms of the loan in order to use it to your benefit. My advice is to immerse yourself into the product and understand it before you sign on the dotted line. BTW, I've also used my credit cards to buy homes. That is far more, to me, serious than an ARM. But, that's my opinion and I was the guy on the hook.
Posted on
November 30, 2007
at
8:14 pm
Wow, I'm shocked anyone would take a credit card as payment for a home. Seems like they'd at least charge you 2-3% extra to cover the processing fees. I bought a car on a credit card once. I consider that one of the worst financial decisions I ever made. Possibly #2 to not shopping around for the best rate on my mortgage.
Posted on
December 1, 2007
at
4:24 am
i`ve never heard of anyone buying a care nor a house witha credit card...everyone i know uses them to buy food and clothes and maybe electronic equipment.i`m surprised to see that anyone bought a car/house with a credit card because you pay much more like this.i would never do that....even if i`d have the money.
Posted on
December 1, 2007
at
8:13 am
When I say I used my credit card, I mean I took a cash advance. I didn't literally charge the house on the card. It was a quick way to get the cash I needed to buy the property. I sold the house in 33 days and cleared 26% on my money after paying all associated fees. Do that four or five times a year and you really never need a day job.
