Dan Fogel - When should you obtain adjustable rate mortgages?

I still regularly sell adjustable rate mortgage products to my clients and I think that there is some misnomer as to what an adjustable rate product is as a result of what happened with the mortgage meltdown that started in 2008. Now the kinds of adjustable rate mortgages that we sell typically have a fixed rate period that is stated in the name of the loan so if it is a five year arm, the rate would be fixed for the first five years and become adjustable thereafter. The same is true for the seven or a 10 year ARM where it will be fixed for those periods of time. What we try to do with those loans, and where I find that they work the best, are for people who are moving into, for instance, their first homes, that might be a condo in the city where their time horizon for living in that kind of might be five or seven years and they might save as much as a half to three-quarters of a point over the current fixed rates and so that's a perfect product for that. We also find that if someone's in the last couple of years of living in the house whether a condo in the city or even a single family home and they know they might be moving to another place in the city or moving off to the suburbs but not for the year so, they could save substantially by switching to a 5 year ARM which might save them one percent over the current rate and help them saves the down payment money for that home purchase.