[quote=briansd1]An aquaintaince of mine is about to walk on her house because her interest-only loan resets next year. Back then she was so sure that buying was the right thing.[/quote]
But what is her payment going to reset to?
Interest rates may well be lower than her existing fixed-rate. LIBOR with spread is at around 3% right now. Has she called the bank to ask what her new payment is going to be? Even with principal it could be lower.
I’d be curious to hear whether it’s going to go up or down. I have several coworkers who were freaking out, but then their payments went down rather than up.
