This story has an example of a 50% increase in payments.
I forgot that the going ARM rate was 3.5%. A $300K loan at 3.5% had payments of $1300.
They will go up to $1800 to $2100 this year.
This is the $1 trillion of resets they keep talking about. It’s the glut of 3/1 ARMs, made at very low rates 3 years ago.
If each ARM is $200K average, that’s 5 million people whose mortgages will increase, mostly at 50% increases. That is a huge deal!
5 million homeowners will see their mortgages go up 50% next year.
Has anyone stopped to think about this? I’ve never heard it put in those terms. Just $1 trillion of loans. But never in terms of the number of people. Or the amount of increase.
