Lenders are stopping the 100% financing. What happens when homeowners need to refinance because their loans reset and they can no longer afford the payments?
1) They can’t get financing because there are no loan products available. And the house won’t appraise at a higher value.
2) They can’t sell because they have no equity. 6% of a $600,000 house is $36,000. Can sellers come up that the cash on closing?
