Failing economy is good news for ARMs

There is a small amount of silver in the middle of this massive storm cloud ? interest rates are dropping for many adjustable rate mortgages. Some 420,000 hybrid ARMs are scheduled to reset in the coming year. For a while many observers were afraid that they would reset higher. Had that happened it certainly would have added to the flood of foreclosures. But thanks to the incredible disappearing interest rate they have dropped and some are now better deals than some fixed rate mortgages. For many borrowers ARMs were a gamble. They allowed people who couldn?t afford the payments of a standard 30-year-fixed to buy houses. The laughable rationale for these loans was once the value of the houses increased borrowers could refinance before the end of the lower introductory interest rates. As a r