Despite Misconceptions, ARMs Right for Many Consumers November 7, 2013 Americans love a comeback story. The chance for redemption is something everyone deserves – even when it comes to the perception of adjustable rate mortgages (ARMs). The much maligned loan program is actually beginning to play a much more prominent role in the industry helping consumers refinance and purchase homes. But didn’t ARMs contribute to the housing meltdown? No. In fact, it’s quite the opposite. An ARM is simply a mortgage structure that allows a borrower to enjoy a low rate for a fixed period of time before the interest rate begins to adjust up and down. Subprime ARM’s failed not because they had the ARM structure, but rather because the underwriting standards used to approve borrowers for those loans by some lenders was abysmal. Are ARMs for everyone? Of course not, there is never a one-size-fits all answer. But they are also not the villains they are sometimes portrayed as. If you would like to talk to Bob about ARMs, or any other topic, please contact us.