Adjustable rate mortgages return ... for wealthy - SmartMoney
When interet rates moved higher, so did mortgage payments for many homeowners with ARMs - often to the point that was beyond their income, contributing to the housing crash and Great Recession.
SmartMoney reports that the wealthy are using adjustable rate mortgages as a way to maximize capital, often saving tens of thousands of dollars. And if rates do spike, they have the means to pay off the loan, the article says.
That's why they aren't being offered to everyone, SmartMoney says.
Read the entire story on SmartMoney.com.