The next “leg down” for the housing market
Credit Crunch, California Housing Crash, Florida Housing Crash, Real Estate August 26th, 2009
If you think the housing market is recovering, you are probably wrong. According to the NY Times:
First American CoreLogic anticipates 600,000 option ARMS to reset within four years.
Option ARMs, which lenders stopped offering last year, gave borrowers four payment options: less than the interest, which increases the balance every month; just the interest; the equivalent of a 30-year fixed-rate mortgage; and the equivalent of a 15-year fixed.
Three-quarters of borrowers take the minimum option, which usually expires after five years or when the balance reaches a cap, generally 110 percent to 125 percent of the original loan, according to the Mortgage Bankers Association.
September 15th, 2009 at 3:30 am
Can you say OUCH. Those numbers are a kick in the head.
September 26th, 2009 at 4:30 pm
I have an Option ARM tied to the MTA index. For the time being, I m okay. Once they go up, I am hosed.
June 5th, 2010 at 4:00 am
love it!!! thanks