ST Alpha - "crazier than that - why would he get an ARM that adjusts *monthly* with a maximum rate of 9.95%? " (Reading a Post)

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In response to "why would he not just pay cash? I mean, it's a penny to him. the mortgage interest deduction?? -- nm" by amanda

crazier than that - why would he get an ARM that adjusts monthly with a maximum rate of 9.95%?

Posted by Max Jul 16 '12, 10:09

Is he expecting to refinance later at a lower rate??

Responses:

because you get a lower rate initially, and if rates go up, you just pay it off. - ceregon Jul 16, 10:13
[deleted] 4
- still, if I've got an empire that big, the last thing I want to do is watch or pay someone to watch rates on a monthly basis. - Max Jul 16, 10:13 3
  - [deleted] 2
    - look at it this way - if he saves 1% on a $5M loan for the ARM option, that's what, $50k per year? Not worth the effort to me in his position. -- nm - Max Jul 16, 10:23
    - mo' money contracts mo' problems! -- nm - Max Jul 16, 10:19

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