Borrowers still frequently request ARMs because they have short-term time horizons and want to save as much as they can on their mortgages. They either expect to move or sell in under 5 years, or they’re expecting a liquidity event (very common in Austin and the San Francisco Bay Area) that will enable them to pay off their mortgages. BUT – the problem is that ARM rates are not lower than 30-year fixed rates.Read More