You may have seen a lot of coverage on the recent trend of Adjustable Rate Mortgages being chosen over Fixed Rate Mortgages.  However, the piece of information missing is that most of the Adjust Rate Mortgages are being utilized for refinance rather than purchase transactions.

It is puzzling that homeowners are choosing Adjustable Rate Mortgages at all given that:

1)      These type of mortgages lead to the current housing crisis

2)      Interest Rates WILL rise

3)      Many homeowners don’t understand how much the interest rate can adjust

4)      Interest Rates are still NEAR historic lows

Before you consider an Adjustable Rate Mortgage, be sure to read the fine print.