Adjustable Rate Mortgages (ARM)

Adjustable Rate Mortgages (ARM)

Should You Choose an ARM For Your Foreclosure Home Purchase?


If you qualify for the particular foreclosure home you wish to purchase with a fixed interest rate, then you should choose the fixed rate mortgage 99% of the time. In this article you will learn why the ARM can be such a bad idea and how you can overcome the anxiety of your decision based upon the facts. Because current interest rates are so low—and have been that way for some time now—making a choice with regard to an adjustable rate mortgage versus a fixed rate mortgage is not difficult.

The recent and continued mortgage crisis can be directly attributed to the sub-prime mortgage meltdown and do a great degree the adjustable mortgages that were the flavor of the day in the real estate industry.

“You may be apprehensive about mortgage payments now, but once you get that raise you will be fine” That line of garbage was the kiss of death to many homebuyers in the past several years and will crop up again as “There is a sucker born every day” and an opportunistic snake in the grass ready to take advantage of the uninitiated around every corner.

Some quick and easy rules to follow when buying foreclosures are:

Never use an ARM for qualifying reasons. Never buy more than you can pay with your current income and never eat more than you can lift.


Do not be misled by the erroneous loan programs that abound in the market today. CDA loans and Farmers home loans are among the many other loan programs that simply will not work when purchasing a foreclosure home. In general terms, these loans are not good for much and specifically regarding foreclosure homes they are actually bad. The single reason that these loans are such a bad idea is that they are not compatible with the foreclosure homes, that you are interested in buying.

It is true that CDA promises a lower interest rate, as does the Farmers home loan program. However, because the wait for the funds can be 90 to 120 days, no government agency is willing to wait that long to remove the foreclosure home from their foreclosure home inventory. Additionally, the money is not guaranteed to be there when you are finally ready to purchase your foreclosure home.

Michael Urbanski is a successful entrepreneur with extensive experience online as the CEO/founder of Heavy Hammer since its inception in 1998. Heavy Hammer has several profitable online platforms for local advertising. Michael also owns several patents for geographic advertising online and has numerous other patents in process. Before launching Heavy Hammer in 1999 Michael was the top salesman for foreclosure homes in the state of Maryland. Among his accomplishments Mr. Urbanski has been a decorated Air Traffic Controller in the Air Force, a successful restaurateur and has written and produced several award winning feature films and top tier video games. Leveraging the success of his previous ventures and experiences, Michael self-financed and launched Heavy Hammer which has been profitable every year of the 12 years it has been in operation.

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