SOME FOLKS HAVE ALL THE LUCK
Anybody who took out an ARM in the last 2-3 years may be about to hit the jackpot:
The heat on U.S. mortgage lenders and servicers was turned up a few degrees this week when the country’s chief bank regulator publicly proposed that they permanently freeze interest rates on subprime adjustable-rate mortgages (ARMs) for many homeowners.
“Keep it at the starter rate. Convert it into a fixed rate. Make it permanent. And get on with it,” Federal Deposit Insurance Corp. Chairman Sheila Bair said in prepared remarks at an investor’s conference.
We took out a 30 year fixed 2.5 years ago. If I had known that the Fed was going to give away free money, I’d have taken that 1% ARM teaser rate and would be sitting pretty for the next 27.5 years.