Utterly Meaningless » Blog Archive » SOME FOLKS HAVE ALL THE LUCK

    Filed at 3:33 pm under by dcobranchi

    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.

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