REALTOR® Ken Mandich Weighs In On The Return Of ARMs And Their Effect On The Housing Market

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Marietta, Georgia -

Ken Mandich from Complete Realty Team has published a new blog post and YouTube video discussing the recent rise of adjustable-rate mortgages (ARMs) and whether they can be a good choice for some homeowners.

Adjustable-rate mortgages were extremely popular at the beginning of the 21st century. Notably, many experts believe that their popularity was in part responsible for the 2008 housing market crisis. However, today, after many years of inactivity, homebuyers are being presented with the option of going for adjustable-rate mortgages again for their home purchases.

ARMs cause market crash

Ken describes the benefits of ARMs by saying, “With an adjustable-rate mortgage, homeowners make lower monthly payments at the beginning and the rate goes up several years into the duration of the mortgage. This helps homebuyers to get started with their dream of homeownership with favorable rates with an expectation that their income will keep up with the increased rates in the future.”

According to statistics from the Mortgage Bankers Association (MBA), in the last 6 months of 2021, around 3.3% of all mortgages issued in the United States were adjustable-rate mortgages. There was a spike in the number of ARMs approved in 2022 with the number finally settling to around 6.5% in the first half of 2023.

Ken talks about the reasons why ARMs have a slight uptick by saying, “It’s simple. Mortgage rates have increased considerably in the last year. With rising rates, several homeowners chose ARMs since standard prices were high and they provided them with a lower rate.”

Despite ARMs being very popular for many homeowners, this resurgence may have also evoked flashbacks to the 2008 crisis. However, the banks and mortgage providers have learned their lessons and are being more selective of who qualifies for ARMs. In the early 2000s, banks and mortgage providers were playing fast and loose with the rules. On the other hand, today, they are seeking verification of employment, assets, incomes, and so forth to make their decisions.

“I realize that ARMs get a bad rap as they conjure up images of the 2008 subprime mortgage crisis that destroyed millions of lives across the nation,” says Ken Mandich. “This time, things are different. Back then, mortgage providers were callous in their conduct and offered mortgages to pretty much anyone who applied. Today, they are doing their due diligence and asking for the right documentation as proof to ensure their customers have the ability to pay off their mortgages in the future. So, there is no fear of ARMs causing another housing crash.”

Ken Mandich, who has called the North Metro area home for over 30 years now, has over a decade of experience being a real estate investor and house flipper. As a REALTOR® and part of the ERA Sunrise team, Ken Mandich helps his clients get straight answers to their questions and delivers proven results. He is intimately familiar with the real estate market in Cobb County and the metro Atlanta area and can help his clients with everything from downsizing, relocating, selling, buying, investing, or even buying their first home in Georgia.

Ken and Complete Realty Team help clients with every step of the real estate transaction process including comparable home price analysis, open houses, property surveys, HOA agreements, credit reports, title companies, lenders, homeowners’ insurance, walk-throughs, terms of sale or purchase, concessions, repairs, and closing documents.

“Our ERA team’s innovative marketing strategies, negotiation skills, and local market knowledge have allowed us to consistently help our clients sell their property for top market value as quickly as possible, as well as help buyers find their perfect dream home or investment property. So, if you are ready to buy a home in Cobb County, give me and my team a call today,” says Ken Mandich.

Readers can contact Ken Mandich at (404) 410-6465 or to get started with finding and moving into their dream property in Cobb County and the Metro Atlanta area. For more real estate news, homebuyers and homeowners are urged to follow his YouTube channel.

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About Complete Realty Team :

REALTORS® and Real Estate Agents Serving Cobb County GA. Experienced listing agents that help you sell your house for top dollar as quickly as possible. Skilled buyer's agents that know the local market and can help you find and buy the perfect home.

Contact Complete Realty Team:

Ken Mandich

Complete Realty Team
1642 Powers Ferry Rd #150
Marietta, GA 30067

(404) 410-6465

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