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ucodegen.
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May 23, 2008 at 3:14 PM #210870May 23, 2008 at 4:19 PM #210756
mixxalot
ParticipantKewl!
“Let the bodies hit the floor!”
A line from a great hard rock song. Cant wait for the implosion so that I can get a nice home in CV for 200k.
All the fools who had to live like the rich on credit will learn the hard way soon.
May 23, 2008 at 4:19 PM #210825ParticipantKewl!
“Let the bodies hit the floor!”
A line from a great hard rock song. Cant wait for the implosion so that I can get a nice home in CV for 200k.
All the fools who had to live like the rich on credit will learn the hard way soon.
May 23, 2008 at 4:19 PM #210852ParticipantKewl!
“Let the bodies hit the floor!”
A line from a great hard rock song. Cant wait for the implosion so that I can get a nice home in CV for 200k.
All the fools who had to live like the rich on credit will learn the hard way soon.
May 23, 2008 at 4:19 PM #210872ParticipantKewl!
“Let the bodies hit the floor!”
A line from a great hard rock song. Cant wait for the implosion so that I can get a nice home in CV for 200k.
All the fools who had to live like the rich on credit will learn the hard way soon.
May 23, 2008 at 4:19 PM #210909ParticipantKewl!
“Let the bodies hit the floor!”
A line from a great hard rock song. Cant wait for the implosion so that I can get a nice home in CV for 200k.
All the fools who had to live like the rich on credit will learn the hard way soon.
May 23, 2008 at 4:53 PM #210771(former)FormerSanDiegan
ParticipantThe coming Alt A implosion is one of the centerpieces for my macro arguments about not buying a house now.
Certainly some vintages of Alt-A ARMs are performing very poorly. (see here: http://globaleconomicanalysis.blogspot.com/2008/04/closer-look-at-arms-reset-problem.html)
I think the option ARMs are a much bigger problem than ALT-a in general.
Consider the reset chart shown below. The bulk of the ALT-A loans start resetting in 2010-2011. SInce this chart was put together in 2007, the bulk of these are likely 5/1 ARMs originated in 2005-2006.
Q. What was the typical rate for 5/1 ARMs originated in 2005-2006 ?
A. between 5.5 – 6%
Q. If these loans were to reset today, what rate would they reset to ?
A. about 5.5 %
I have to conclude that problems in the “second wave” of mortgage resets will more likely be due to Option Arms than Alt-a resets.
[img_assist|nid=7668|title=Reset Chart|desc=|link=node|align=left|width=466|height=428]
May 23, 2008 at 4:53 PM #210840ParticipantThe coming Alt A implosion is one of the centerpieces for my macro arguments about not buying a house now.
Certainly some vintages of Alt-A ARMs are performing very poorly. (see here: http://globaleconomicanalysis.blogspot.com/2008/04/closer-look-at-arms-reset-problem.html)
I think the option ARMs are a much bigger problem than ALT-a in general.
Consider the reset chart shown below. The bulk of the ALT-A loans start resetting in 2010-2011. SInce this chart was put together in 2007, the bulk of these are likely 5/1 ARMs originated in 2005-2006.
Q. What was the typical rate for 5/1 ARMs originated in 2005-2006 ?
A. between 5.5 – 6%
Q. If these loans were to reset today, what rate would they reset to ?
A. about 5.5 %
I have to conclude that problems in the “second wave” of mortgage resets will more likely be due to Option Arms than Alt-a resets.
[img_assist|nid=7668|title=Reset Chart|desc=|link=node|align=left|width=466|height=428]
May 23, 2008 at 4:53 PM #210868ParticipantThe coming Alt A implosion is one of the centerpieces for my macro arguments about not buying a house now.
Certainly some vintages of Alt-A ARMs are performing very poorly. (see here: http://globaleconomicanalysis.blogspot.com/2008/04/closer-look-at-arms-reset-problem.html)
I think the option ARMs are a much bigger problem than ALT-a in general.
Consider the reset chart shown below. The bulk of the ALT-A loans start resetting in 2010-2011. SInce this chart was put together in 2007, the bulk of these are likely 5/1 ARMs originated in 2005-2006.
Q. What was the typical rate for 5/1 ARMs originated in 2005-2006 ?
A. between 5.5 – 6%
Q. If these loans were to reset today, what rate would they reset to ?
A. about 5.5 %
I have to conclude that problems in the “second wave” of mortgage resets will more likely be due to Option Arms than Alt-a resets.
[img_assist|nid=7668|title=Reset Chart|desc=|link=node|align=left|width=466|height=428]
May 23, 2008 at 4:53 PM #210888ParticipantThe coming Alt A implosion is one of the centerpieces for my macro arguments about not buying a house now.
Certainly some vintages of Alt-A ARMs are performing very poorly. (see here: http://globaleconomicanalysis.blogspot.com/2008/04/closer-look-at-arms-reset-problem.html)
I think the option ARMs are a much bigger problem than ALT-a in general.
Consider the reset chart shown below. The bulk of the ALT-A loans start resetting in 2010-2011. SInce this chart was put together in 2007, the bulk of these are likely 5/1 ARMs originated in 2005-2006.
Q. What was the typical rate for 5/1 ARMs originated in 2005-2006 ?
A. between 5.5 – 6%
Q. If these loans were to reset today, what rate would they reset to ?
A. about 5.5 %
I have to conclude that problems in the “second wave” of mortgage resets will more likely be due to Option Arms than Alt-a resets.
[img_assist|nid=7668|title=Reset Chart|desc=|link=node|align=left|width=466|height=428]
May 23, 2008 at 4:53 PM #210925ParticipantThe coming Alt A implosion is one of the centerpieces for my macro arguments about not buying a house now.
Certainly some vintages of Alt-A ARMs are performing very poorly. (see here: http://globaleconomicanalysis.blogspot.com/2008/04/closer-look-at-arms-reset-problem.html)
I think the option ARMs are a much bigger problem than ALT-a in general.
Consider the reset chart shown below. The bulk of the ALT-A loans start resetting in 2010-2011. SInce this chart was put together in 2007, the bulk of these are likely 5/1 ARMs originated in 2005-2006.
Q. What was the typical rate for 5/1 ARMs originated in 2005-2006 ?
A. between 5.5 – 6%
Q. If these loans were to reset today, what rate would they reset to ?
A. about 5.5 %
I have to conclude that problems in the “second wave” of mortgage resets will more likely be due to Option Arms than Alt-a resets.
[img_assist|nid=7668|title=Reset Chart|desc=|link=node|align=left|width=466|height=428]
May 23, 2008 at 9:34 PM #210881Anonymous
GuestThe chart does speak for itself, but I believe the option ARM folks probably have more wherewithal to refi into something more conventional than the subprimes.
May 23, 2008 at 9:34 PM #210948GuestThe chart does speak for itself, but I believe the option ARM folks probably have more wherewithal to refi into something more conventional than the subprimes.
May 23, 2008 at 9:34 PM #210977GuestThe chart does speak for itself, but I believe the option ARM folks probably have more wherewithal to refi into something more conventional than the subprimes.
May 23, 2008 at 9:34 PM #211000GuestThe chart does speak for itself, but I believe the option ARM folks probably have more wherewithal to refi into something more conventional than the subprimes.
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