ARMs have been strained,
ARMs have been twisted.
Since Lehman failed you may find that...
your ARM as around your own neck?.
This is mainly because most conforming ARMs made after 2003 are based on an index called "LIBOR" [London Interbank Offered Rate... this is the rate that banks charge one another] and LIBOR is up an uncharacteristic 2 percent since September. Ooof.
Historically, LIBOR has tracked the U.S. treasury market, plus about 1/2-percent. This suggests that banks are only slightly less likely to default versus the U.S. government. That communicated that banks, at the time were only fractionally less likely to default than the US Govt.
Well guess what...
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Chris the ImplementerOrlando Real Estate | Florida Reverse Mortgages Florida Short Refinance | Mortgage Chili Blog