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February 10, 2008 at 12:29 PM in reply to: How come no talk of the 2nd wave of mortgage resets (ie. option ARMs) in 2009-2012?!? #151107February 10, 2008 at 12:29 PM in reply to: How come no talk of the 2nd wave of mortgage resets (ie. option ARMs) in 2009-2012?!? #151113bearnankeParticipant
This was briefly touched on above, but to refocus the thread (if I may), the key metric for the option arms is how many people are paying the minimum. It is my feeling, backed up with a little data (don’t remember the sources, but I’ve been short DSL for a year so picked it up via them) that the vast majority of option ARM borrowers only make the minimum and that after the balance goes to 115% – 120% (depends on the loan) it “resets” and you pay it off as if it were fixed (full balance, regular/high rate).
So, the real question is, looking at the chart, when were the loans made, and when will the FORCED resets occur. If you’ve been making 100% payments, you do have some past payment skin in the game, but these I believe will be the minority.
February 10, 2008 at 12:29 PM in reply to: How come no talk of the 2nd wave of mortgage resets (ie. option ARMs) in 2009-2012?!? #151131bearnankeParticipantThis was briefly touched on above, but to refocus the thread (if I may), the key metric for the option arms is how many people are paying the minimum. It is my feeling, backed up with a little data (don’t remember the sources, but I’ve been short DSL for a year so picked it up via them) that the vast majority of option ARM borrowers only make the minimum and that after the balance goes to 115% – 120% (depends on the loan) it “resets” and you pay it off as if it were fixed (full balance, regular/high rate).
So, the real question is, looking at the chart, when were the loans made, and when will the FORCED resets occur. If you’ve been making 100% payments, you do have some past payment skin in the game, but these I believe will be the minority.
February 10, 2008 at 12:29 PM in reply to: How come no talk of the 2nd wave of mortgage resets (ie. option ARMs) in 2009-2012?!? #151205bearnankeParticipantThis was briefly touched on above, but to refocus the thread (if I may), the key metric for the option arms is how many people are paying the minimum. It is my feeling, backed up with a little data (don’t remember the sources, but I’ve been short DSL for a year so picked it up via them) that the vast majority of option ARM borrowers only make the minimum and that after the balance goes to 115% – 120% (depends on the loan) it “resets” and you pay it off as if it were fixed (full balance, regular/high rate).
So, the real question is, looking at the chart, when were the loans made, and when will the FORCED resets occur. If you’ve been making 100% payments, you do have some past payment skin in the game, but these I believe will be the minority.
February 10, 2008 at 12:29 PM in reply to: How come no talk of the 2nd wave of mortgage resets (ie. option ARMs) in 2009-2012?!? #150844bearnankeParticipantThis was briefly touched on above, but to refocus the thread (if I may), the key metric for the option arms is how many people are paying the minimum. It is my feeling, backed up with a little data (don’t remember the sources, but I’ve been short DSL for a year so picked it up via them) that the vast majority of option ARM borrowers only make the minimum and that after the balance goes to 115% – 120% (depends on the loan) it “resets” and you pay it off as if it were fixed (full balance, regular/high rate).
So, the real question is, looking at the chart, when were the loans made, and when will the FORCED resets occur. If you’ve been making 100% payments, you do have some past payment skin in the game, but these I believe will be the minority.
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