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?