Some of this “Subprime Fix” stuff is pretty funny.
I like the last line of that article.
And many borrowers have already demonstrated their credit worthiness by making two or three years of payments during the initial, fixed part of the loan. It’s only when the loan resets at much higher rates that many of them fail to make payments.
Ummmm… Yeah, they’re all so “credit worthy” by paying “teaser rates” that are set lower than prevailing rents!! Ohhhh, they were such great “owners” there for a while!
What a joke.
What’s even funnier is that they actually believe these people can even AFFORD a fixed rate loan at 6.75% (or any percent really). A fixed rate 30 year loan at that rate is probably just as large a payment shock as their suicide loan was at reset! If these FB’s could have refied to a fixed rate loan, don’t you think they’d have already done that? It’s not like they needed Congressional permission to switch loans or something!
