housing news: Will Option ARM Resets Negatively Effect the Housing Market?
- 09/25/09 07:00 AM
Are we in for a national crisis with option ARMs resetting in the next several years, or it is all just a bunch of baloney?Option ARMs were the most popular types of mortgage product between 2003 and 2006, as they provided many borrowers who otherwise would be unable to afford a home with a chance to purchase. Offering low “teaser” mortgage rates for a fixed time (usually 5 years), interest rates were scheduled to readjust some time in the future. Many of these loans were pay option ARMs, giving borrowers the ability to choose how much they wanted to pay each … (0 comments)
Are we in for a national crisis with option ARMs resetting in the next several years, or it is all just a bunch of baloney?Option ARMs were the most popular types of mortgage product between 2003 and 2006, as they provided many borrowers who otherwise would be unable to afford a home with a chance to purchase. Offering low “teaser” mortgage rates for a fixed time (usually 5 years), interest rates were scheduled to readjust some time in the future. Many of these loans were pay option ARMs, giving borrowers the ability to choose how much they wanted to pay each … (0 comments)
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