From: "Mechanics of Money Financial BBS" 
Newsgroups: misc.invest.financial-plan
Subject: Re: Newbie question on mortgage rates
Date: Thu, 6 Apr 2006 13:23:27 -0500
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Sashi,

You should also look out for what fees the company is going to earn.
Either they will charge a larger fee (in excess of 2%), which in
essence purchases points (which may or may not be fully disclosed to
you) to reduce the rate.  Many states have enacted predatory lending
statutes to address this issue (some say that any fee over 2% is deemed
to be predatory).  You should really consider not going the ARM avenue
given that interest rates are still at historic lows.  If possible try
to lock in a low fixed rate today.

Hope that helps.


Gary Brolis
http://www.MechanicsofMoney.com
http://www.MechanicsofMoney.com/blog.php