We all know the old adage, “If it seems too good to be true, it probably is.”
Well, this tends to be my take on Adjustable Rate Mortgages (ARMs).
Hey Moguls, Jason Lucchesi at your service. You may or may not have noticed, but ARMs have really been making a comeback.
...And I’m NOT the most excited person in the world about this.
Let me tell you why...
Since my background includes experience in the mortgage industry, I feel confident giving my insight on this: I don’t think ARMs are going to be good for us. In fact, I think these could lead to disastrous market issues.
When it comes to ARMs, lenders typically give these to borrowers with exceptional credit. (And that, by the way, was how these were done in the early 2000s too.)
But up until the 2008 market crash, people could get 100% financing with as low as a 580 FICO score. (I know, why did lenders do that... right?!)
So, what does all this mean for investors?
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Jason Lucchesi
Jason Lucchesi is the co-founder of real estate and marketing company Global Fortune Solutions, LLC. Jason has been in the real estate industry since 2002, where he began his career as a Loan Officer. His career flourished in the mortgage business when he accepted an Account Executive position with Countrywide in 2004. Within his first six months, he had achieved the #1 Account Executive in the Midwest territory. In January of 2006. During this time, Jason began investing part-time in multi-family rental properties while also becoming involved in wholesaling. By 2006, Jason was transferred to the Indianapolis area to save a struggling branch. He quickly took the branch out of the red into the green while also beginning to purchase distressed residential properties part-time. In 2007, Jason began pursuing his ultimate dream of becoming a full-time real estate investor and began investing in REOs in 2008. Since then, Jason has been involved with many aspects of real estate including short sales, tax sales/deeds purchasing, purchasing homes in distress, wholesaling, and many other avenues. Jason has been married to his wonderful wife Jamie since 2007, and they are proud parents to their sons Brady and Gavin.