Adjustable Interest Mortgage - Good Results

There has been talk in various publications and news outlets about the second wave of defaults that are due to when ARM's (Adjustable Rate Mortgages) reset over the next couple of years. For some time now when hearing these reports I have wondered why the thinking is the resets would be a bad thing as interest rates are at historic lows, wouldn't the interest rates on these loans adjust lower?
While this may not be true for all I have just seen two rate adjustments that are dramatic and in the right direction for a homeowner who also holds an investment property. In this case the primary residence rate adjusted from 6.625% to 2.75% and the investment property adjusted from 6% to 2.75%. The change in these two rates reduced the combined payments by $1,352.00 per month. This is an annual expense reduction of over $16,000.00, this made for a very happy homeowner.
Next time news outlets report the "second wave" of mortgage resets as a coming disaster just remember that rates adjust both ways, with the current rates the resets could be welcome news.