There are finance experts that are actually advising people to acquire ARM loans. Maybe someone smarter than me can read this article and point out the parts that are supposed to make sense. I can't understand why in the hell someone would intentionally sign up for a loan with an adjustable interest rate.
For an ARM to make sense, a borrower has to be comfortable taking a gamble that interest rates won't rise, or that he can sell the house before they do.
How many houses are up for sale at the moment that can't be sold? Thousands?
That is why ARMs make sense mostly for borrowers who expect to be in a home for a short time. "If the household is truly intending to stay only for five years, they should take the five-year ARM," says Stuart Gabriel, director of the Ziman Center for Real Estate at the University of California, Los Angeles.
Most people who drop a 10% down payment on a house aren't gonna take off in 5 years, IMO. That'd be stupid.
The risk to borrowers is that the new payments after the fixed-rate period are suddenly unaffordable. While there isn't a way to control for a job loss or other unforeseen loss of household income, it doesn't seem likely that interest rates will spike so high in coming years that borrowers will end up paying the maximum, says Cameron Findlay, chief economist at LendingTree.com, an online marketplace that connects consumers to lenders. He expects the government will keep some sort of control over the rate environment as home values and employment recover.
The scariest part of that statement: someone is going to believe him. 
am I way off base here or does this seem ludicrous?
