As you already know from diligently reading SocketSite, adjustable-rate mortgages (ARMs) are all the rage in our fair city and account for the vast majority new mortgages. What you might not know, and few brokers or agents like to emphasize, is that most ARMs expose barrowers to significantly more risk than traditional fixed-rate mortgages.
Now don’t get us wrong, ARMs definitely have their time and place if effectively employed and managed. All we’re suggesting, is that if you’re considering using an ARM, please take the time to fully understand, and mitigate, the potential risks associated with these loans. A couple of articles to get you started:
· Hazards of option ARMs [Chronicle]
· More sharks in home loan waters [Money]
· Why Hybrid Mortgages Can Be a Huge Gamble [RealEstateJournal]

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