Housing Update

Checked out my buying power today. My calculation was right on. Turns out I might actually be able to afford an apartment around here. Please read here for my last comments about mortgages. One of the most interesting things I learned about today are 3/1 and 5/1 ARMs. ARMs are normal adjustable rate mortgages, changing as rates change. 3/1s and 5/1s are fixed mortgages for the first 3 or 5 years and then adjustable annually after that.

These are a great deal for me, and others like me, because more likely than not, I will be moving within 3-5 years. These loans tend to be lower rates, because companies have to worry less about the interest rate environment turning against them.