Your Economy (No Politics)

[dickmilde]

Does anyone have any information
on the rates that these option arms are resetting to? It looks like there is a peak in option arms coming up late nest year but I haven't seen anything about the actual result of the resets in rates for these mortgages. It's possible that many of the resets may well come in at very reasonable interest rates given the current rate environment. My son just obtained a 30 year fixed at 4.625% and didn't have to buy it down.

Certainly there will be a large wave of additional defaults but I'm betting that the industry could be surprised re the number of mortgage holders that will come out way ahead when they actually fix their rates.

Dick Milde