ARM reset rate … drumroll please

[DaCounselor]

Alot of the people in these loans also have 2nds as part of their 80/20 deal, with the 2nds tied to prime which is also down. My neighbor is in one of these and he says his payments are down almost $700/month and his prop taxes are down over $100/month since his downward modification. Those are some big dollars every month.

I guess if a reset includes going from IO to principle as well then that may change things, but from everything I know many of the 3/1 and 5/1 ARMS that were common in SD were IO for 10 yrs. With rates at loan inception around 5.5%, the 12 month LIBOR would need to climb to 3.25% (assuming a 2.25% margin) just to get back to the initial payment. I think on these loans we are years away from seeing anyone in distress due to rates – may not see anyone in trouble until the IO period runs out and rates are up.

So there are a slew of people that are way upside down now but their payments are shrinking dramatically to the point of possibly being cheaper than renting a comp. So they are sitting and waiting for the end game with these loans while enjoying low payments. These loans are not even on deck yet, they are still in the dugout, hell they may even be still in the parking lot and not even in the stadium yet. They are just another piece of this fiasco that is going to have to play out eventually.

[(former)FormerSanDiegan]

Update for Sept 30, 2009

For those who have alt-A or Prime ARM loans tied to the 12-month LIBOR. This month’s reset rate is …

Libor + 2.25%

Sept 30 12-month LIBOR : 1.26%

Fully Indexed ARM rate : 3.51 % –> nearest 1/8th

RATE : 3.625%

[(former)FormerSanDiegan]

Update for Sept 30, 2009

For those who have alt-A or Prime ARM loans tied to the 12-month LIBOR. This month’s reset rate is …

Libor + 2.25%

Sept 30 12-month LIBOR : 1.26%

Fully Indexed ARM rate : 3.51 % –> nearest 1/8th

RATE : 3.625%

[(former)FormerSanDiegan]

Update for Sept 30, 2009

For those who have alt-A or Prime ARM loans tied to the 12-month LIBOR. This month’s reset rate is …

Libor + 2.25%

Sept 30 12-month LIBOR : 1.26%

Fully Indexed ARM rate : 3.51 % –> nearest 1/8th

RATE : 3.625%

[(former)FormerSanDiegan]

Update for Sept 30, 2009

For those who have alt-A or Prime ARM loans tied to the 12-month LIBOR. This month’s reset rate is …

Libor + 2.25%

Sept 30 12-month LIBOR : 1.26%

Fully Indexed ARM rate : 3.51 % –> nearest 1/8th

RATE : 3.625%

[(former)FormerSanDiegan]

Update for Sept 30, 2009

For those who have alt-A or Prime ARM loans tied to the 12-month LIBOR. This month’s reset rate is …

Libor + 2.25%

Sept 30 12-month LIBOR : 1.26%

Fully Indexed ARM rate : 3.51 % –> nearest 1/8th

RATE : 3.625%

[SD Realtor]

Well I guess when the bond market falls apart all the surf will be up.

[SD Realtor]

Well I guess when the bond market falls apart all the surf will be up.

[SD Realtor]

Well I guess when the bond market falls apart all the surf will be up.

[SD Realtor]

Well I guess when the bond market falls apart all the surf will be up.

[SD Realtor]

Well I guess when the bond market falls apart all the surf will be up.

[(former)FormerSanDiegan]

I stopped updating this because it was so boring (which was kinda the point in the first place), but here’s the updates since September 2009 …

For those who have alt-A or Prime ARM loans tied to the 12-month LIBOR + 2.25% margin (rounded up to the next 8th).

Sept-Dec 2009
September 12-month LIBOR : 1.26%
fully-indexed ARM reset RATE : 3.625%

October 12-month LIBOR: 1.33
fully-indexed ARM reset RATE : 3.625%

November 12-month LIBOR: 1.20
fully-indexed ARM reset RATE : 3.5%

December 12-month LIBOR: 1.02
fully-indexed ARM reset RATE : 3.375%

2010

January 12-month LIBOR: 0.98
fully-indexed ARM reset RATE : 3.25%

February 12-month LIBOR: 0.85
fully-indexed ARM reset RATE : 3.125%

Most of these loans had starting rates in the mid 5% range, so they will either go down significantly ort stay the same in cases where there is an interest rate floor.

[(former)FormerSanDiegan]

I stopped updating this because it was so boring (which was kinda the point in the first place), but here’s the updates since September 2009 …

For those who have alt-A or Prime ARM loans tied to the 12-month LIBOR + 2.25% margin (rounded up to the next 8th).

Sept-Dec 2009
September 12-month LIBOR : 1.26%
fully-indexed ARM reset RATE : 3.625%

October 12-month LIBOR: 1.33
fully-indexed ARM reset RATE : 3.625%

November 12-month LIBOR: 1.20
fully-indexed ARM reset RATE : 3.5%

December 12-month LIBOR: 1.02
fully-indexed ARM reset RATE : 3.375%

2010

January 12-month LIBOR: 0.98
fully-indexed ARM reset RATE : 3.25%

February 12-month LIBOR: 0.85
fully-indexed ARM reset RATE : 3.125%

Most of these loans had starting rates in the mid 5% range, so they will either go down significantly ort stay the same in cases where there is an interest rate floor.

[(former)FormerSanDiegan]

I stopped updating this because it was so boring (which was kinda the point in the first place), but here’s the updates since September 2009 …

For those who have alt-A or Prime ARM loans tied to the 12-month LIBOR + 2.25% margin (rounded up to the next 8th).

Sept-Dec 2009
September 12-month LIBOR : 1.26%
fully-indexed ARM reset RATE : 3.625%

October 12-month LIBOR: 1.33
fully-indexed ARM reset RATE : 3.625%

November 12-month LIBOR: 1.20
fully-indexed ARM reset RATE : 3.5%

December 12-month LIBOR: 1.02
fully-indexed ARM reset RATE : 3.375%

2010

January 12-month LIBOR: 0.98
fully-indexed ARM reset RATE : 3.25%

February 12-month LIBOR: 0.85
fully-indexed ARM reset RATE : 3.125%

Most of these loans had starting rates in the mid 5% range, so they will either go down significantly ort stay the same in cases where there is an interest rate floor.

[(former)FormerSanDiegan]

I stopped updating this because it was so boring (which was kinda the point in the first place), but here’s the updates since September 2009 …

For those who have alt-A or Prime ARM loans tied to the 12-month LIBOR + 2.25% margin (rounded up to the next 8th).

Sept-Dec 2009
September 12-month LIBOR : 1.26%
fully-indexed ARM reset RATE : 3.625%

October 12-month LIBOR: 1.33
fully-indexed ARM reset RATE : 3.625%

November 12-month LIBOR: 1.20
fully-indexed ARM reset RATE : 3.5%

December 12-month LIBOR: 1.02
fully-indexed ARM reset RATE : 3.375%

2010

January 12-month LIBOR: 0.98
fully-indexed ARM reset RATE : 3.25%

February 12-month LIBOR: 0.85
fully-indexed ARM reset RATE : 3.125%

Most of these loans had starting rates in the mid 5% range, so they will either go down significantly ort stay the same in cases where there is an interest rate floor.

[Author]

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