Donna Pandori

Hybrid Explosion

Filed By Donna Pandori | June 03, 2009 5:00 PM | comments

Filed in: Living, Politics

Pam Spaulding has a good post up, "Are bailed-out banks about to cause another mortgage meltdown?", over at

Is there a new mortgage meltdown on the horizon?

I believe the mortgage beast discussed in Pam's article is actually a Hybrid ARM (adjustable rate mortgage) loan which is not quite the same as the evil ARM loan at the epicenter of our current mortgage crisis. My initial reaction though is "Yikes!"

A Hybrid ARM is a good choice for the right investor who knows what they're doing. But (and a big BUT) you have to know what the heck you are doing. What I've read about the Hybrid ARM is difficult to interpret. Average home buyers beware. I'm a conventional fixed rate loan person - always have been, always will be. I'm a firm believer in if you can't afford it, don't buy it.

What I would like to know is can any Tom, Dick, or Harry capable of signing their name be approved for a Hybrid ARM mortgage regardless of their financial situation? If so, hang on to your seats because the second wave of fallout from our current mortgage meltdown hasn't even hit yet:

What the heck are our Congressman and Senators doing in Washington?

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This honestly scares the crap out of me. In a way, I'm kind of lucky that I'm growing up in the middle of a recession; I have nothing to lose and everything to gain, financially, and I'll be coming into financial independence right about the time that the market hits bottom.

Then again, I'm just trying my darndest to make some silver lining to the cloud. :)