Adjustable Rate Mortgages - The Scary Reality

By
Mortgage and Lending with Your Tampa Bay Mortgage Source

Did you know there are trillions of dollars in adjustable rate mortgages that are going to adjust this year alone?  An even more frightening piece of information is that 1 in 2 homeowners do not know what type of a mortgage they have and worst of all, nearly 2 million homes will go into foreclosure because of these adjustable rates mortgages.

There is no doubt, we all know someone who will be affected by an adjustable rate mortgage.  The key is protecting those people's homes through education.  Homeowners who currently have an adjustable rate mortgage should be making consultation appointments right now to determine what their mortgage options are before they have a payment recasting.

Most lenders (myself included) will offer a FREE mortgage consultation.  As we all know, education is the first step to a life long relationship built on trust.

mortgage lender

Comments (9)

Katrina Madewell
Charles Rutenberg Rlty- More than 5,000 agents(813) 777-1196 - Tampa, FL
Tampa FL Homes for sale | Tampa Bay - (813) 777-1196

Leah,

This is a great article about Adjustable Rate Mortgages.  Scary to think how many may actually LOOSE their home because of not having a knowledgeable consultant to help them make good choices. 

Katrina

May 15, 2007 07:20 AM
Leah Ross
Your Tampa Bay Mortgage Source - Tampa, FL
Tampa, Florida Mortgage
Thanks Katrina!!
May 15, 2007 07:37 AM
Dave Cheatham
INC Financial - Bartlett, IL
People need to refi now.  They do not need to wait for the loan to start adjusting.
May 15, 2007 07:57 AM
Leah Ross
Your Tampa Bay Mortgage Source - Tampa, FL
Tampa, Florida Mortgage

Dave, you are right, now, how do we educate the public?

May 15, 2007 08:23 AM
Cyndee Haydon
Charles Rutenberg Realty - Clearwater, FL
727-710-8035 Clearwater, Beach Short Sales Luxury Condos &Homes

Leah - great post. You are so right!

P.S. I look pretty in pink :-)

May 15, 2007 03:47 PM
Jack Haydon
Charles Rutenberg Realty - Clearwater Beach, FL
Clearwater Beach Condos - Real Estate Homes for Sale

Leah,

 

Cute graphic and scary reality of adjustable mortgages in this marketplace.

 

Jack

May 15, 2007 04:49 PM
Susie Roscoe
Signature Realty Associates - Brandon, FL
Real Estate Specialist | Brandon, FL
Leah---GREAT POST!!  How true...how sad...I hope they find YOU to do a RE-FI before they are headed into foreclosure!!  PS...I forgot to give you that lady's name about the down payment assistance program at the BRO 1/2 day!  I need to send you an email...
May 17, 2007 10:08 PM
Jenny Croshaw
South Florida Structured Real Estate - Miami Beach, FL

Great post...

unfortunately I think we will end up with regulation as the industry could not contain itself. I personally would like to see all loan originators be forced to hold for five years and loans greater than 3X the buyers income. ...yes I believe ...unfortunately we need to protect people from themselves...

Have I grew up in Tampa! Go Chamberlain Chiefs! C/O '90

 

May 17, 2007 10:14 PM
Steven Shewell
Primary Residential Mortgage, Inc. - Ephrata, PA
The Mortgage Maverick

The ARMs that are sub-prime loans that are adjusting this year are going to contribute to a substantial increase in the foreclosure market.  Most sub-prime loans have a first adjustment cap of 3%, as opposed to the 2% of a conforming ARM.

Naturally, most of them will adjust the full 3%.  This is going to have a tremendously negative effect on the customer's ability to repay.

May 18, 2007 01:53 AM