Those that can have or will refi their loans. For the others the payment shock of a fully amortized payment or the inability to qualify for a loan with a higher payment keeps them in their current loans. I don’t think it’s just the exotic loans that is putting pressure on the real estate bubble. It’s the low and zero down deals that is the real achilles’ heel to this market. When the market corrects those with little or no equity will feel the pain first.
