Investing: A Call to ARMs

Are you too fixated on a fixed-rate mortgage? You may be paying more than you should for peace of mind

It's never easy to understand exactly what Alan Greenspan means when he makes his periodic Delphic statements about the financial system. But the Federal Reserve chairman set a new whazzat? standard recently when he suggested that the millions of homeowners who proudly hold a fixed-rate mortgage--roughly 80% of all those with a mortgage--are committing a financial blun-der that may cost them thousands of dollars a year.

Huh? Interest rates across the board are near 45-year lows. How could it be a mistake to lock in a low rate now and know your monthly principal and interest payment will never rise?


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