Some 420,000 hybrid ARMs are scheduled to reset in 2009, according to the Treasury Department. A year or so ago, it seemed that many of these loans were going to see their interest rates reset to as high as 12% or more. But then interest rates started falling, hitting lows they hadn't seen in 37 years.

I know first hand what this article is referencing. I purchased my first property 5 years ago in February of 2004. I chose to go with a 5/1 ARM as I didn't think I'd live in the property for more than 5 years. I also figured I would sell it before the rate reset after the 5 years. I was right about the first part, but wrong about the second. This passed May I decided to rent the place out as the income was substantially more than the mortgage and condo fee.

Unlike what the article states, I didn't go with an ARM because I couldn't afford the 30 year payment, I just thought it was a better option for my situation. As it turns out, I received a notice in the mail from Chase stating that my rate was going to adjust effective 4/1/09. I was a little concerned that my payment would be going higher, but fortunately for me, my rate went down from 4.375% to 4%! This was obviously great news for me, and it sounds like thousands of other homeowners are receiving similar good news.