How will the ‘rate freeze’ affect the bottom? Won’t it drag it out further than 2011? Especially w/ boomers retiring? The current plan applies to owner occupied homes and would apply to borrowers with loans made at the start of 2005 through July 30 of this year with rates that are scheduled to rise between Jan. 1, 2008, and July 31, 2010. When the loans begin resetting beyond 2010, will the homes have gained enough equity for home owners to afford them, even if their income had had not climbed much in five years?
Also, does anyone know what % of the resets are owner occupied? And will this rate affect new loans?
