I have one property that will have its interest rate re-set in October of this year. If it were to re-set now, the interest rate would be 4.75% to 5.00% (the interest rate is currently at 4.5%). For me, the interest rate is based on the treasury one year rate (thank you mortgage broker!) instead of the LIBOR, which has been a higher rate. Also, because I used to live in this house, the interest rate would always re-set to something lower than what I can re-finance it to. So I’m not particularly hurt by the re-set. Even if interest rates go higher, my interest rate would still be substantially lower than the current rates.
Is anybody else in the same boat? I don’t know how many other people took interest rates like mine, but if the re-set doesn’t hurt as badly as most people on this board have anticipated, there might not be a flood of foreclosures in this next wave. I don’t know though maybe my situation is an anomaly.
Also, my HELOC rates are now below my first mortgage rates for my primary residence. How crazy is that?
