Re: How can mortgage payment be this low?

>my mortgage payment nearly in half (A.R.M. 1.25% start rate/3.87%
>APR)
.ARM=Ajdustable rate mortgage.

There  is an adjustable rate mortgage. It starts off low and the interest rate
goes up for a number of years. 4 or 5 I think. It is what people get when they
want to overbuy and can't qualify for the higher payment. The only time to use
this one is on a property you intend to fix up and sell quickly. less interest
paid out of pocket.

There is also a mortgage that changes with the current interest rates. Usually
gets a yearly review and has a cap, but the cap may be high.

Both are a bad deal. You want a fixed rate mortgage.