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(former)FormerSanDiegan
ParticipantContraman –
What are the precipitating conditions for a short re-fi ?
Does the property have to be in default ?
Could any Joe Schmoe who is upside down (but otherwise capable of making payments) do this sort of thing ?ParticipantContraman –
What are the precipitating conditions for a short re-fi ?
Does the property have to be in default ?
Could any Joe Schmoe who is upside down (but otherwise capable of making payments) do this sort of thing ?ParticipantContraman –
What are the precipitating conditions for a short re-fi ?
Does the property have to be in default ?
Could any Joe Schmoe who is upside down (but otherwise capable of making payments) do this sort of thing ?ParticipantContraman –
What are the precipitating conditions for a short re-fi ?
Does the property have to be in default ?
Could any Joe Schmoe who is upside down (but otherwise capable of making payments) do this sort of thing ?ParticipantStocks Fluctuate.
ParticipantStocks Fluctuate.
ParticipantStocks Fluctuate.
ParticipantStocks Fluctuate.
ParticipantStocks Fluctuate.
ParticipantI can speak for the loans I considered/took circa 2003-2005. In one case (2003) I had a 5/1 ARM, I/O loan on a refinance for an investment property. The rate was 5.625 and would have reset in Oct ’08 at LIBOR + 2.25. Based on current LIBOR the reset rate would be 5%.
However, as a prudent person I refied into a 30-year fixed at 6.25% late last year when short-term rates were a couple points higher. In the short run I would have been better off keeping my loan.
Pretty much the same terms were available in 2005. These would be considered either alt-A or prime loans and did not have negative amortization options.
When you look at mortgage reset charts the ones with teaser rates are typically categorized as Option adjustable rate loans. If you look at the Credit-Suisse chart on Mish’s Blog you might notice that these are approximately the same order of magnitude as the sub-prime resets happening now.
I believe that the default rates on the option ARMS may rival the sub-prime defaults we are currently seeing.ParticipantI can speak for the loans I considered/took circa 2003-2005. In one case (2003) I had a 5/1 ARM, I/O loan on a refinance for an investment property. The rate was 5.625 and would have reset in Oct ’08 at LIBOR + 2.25. Based on current LIBOR the reset rate would be 5%.
However, as a prudent person I refied into a 30-year fixed at 6.25% late last year when short-term rates were a couple points higher. In the short run I would have been better off keeping my loan.
Pretty much the same terms were available in 2005. These would be considered either alt-A or prime loans and did not have negative amortization options.
When you look at mortgage reset charts the ones with teaser rates are typically categorized as Option adjustable rate loans. If you look at the Credit-Suisse chart on Mish’s Blog you might notice that these are approximately the same order of magnitude as the sub-prime resets happening now.
I believe that the default rates on the option ARMS may rival the sub-prime defaults we are currently seeing.ParticipantI can speak for the loans I considered/took circa 2003-2005. In one case (2003) I had a 5/1 ARM, I/O loan on a refinance for an investment property. The rate was 5.625 and would have reset in Oct ’08 at LIBOR + 2.25. Based on current LIBOR the reset rate would be 5%.
However, as a prudent person I refied into a 30-year fixed at 6.25% late last year when short-term rates were a couple points higher. In the short run I would have been better off keeping my loan.
Pretty much the same terms were available in 2005. These would be considered either alt-A or prime loans and did not have negative amortization options.
When you look at mortgage reset charts the ones with teaser rates are typically categorized as Option adjustable rate loans. If you look at the Credit-Suisse chart on Mish’s Blog you might notice that these are approximately the same order of magnitude as the sub-prime resets happening now.
I believe that the default rates on the option ARMS may rival the sub-prime defaults we are currently seeing.ParticipantI can speak for the loans I considered/took circa 2003-2005. In one case (2003) I had a 5/1 ARM, I/O loan on a refinance for an investment property. The rate was 5.625 and would have reset in Oct ’08 at LIBOR + 2.25. Based on current LIBOR the reset rate would be 5%.
However, as a prudent person I refied into a 30-year fixed at 6.25% late last year when short-term rates were a couple points higher. In the short run I would have been better off keeping my loan.
Pretty much the same terms were available in 2005. These would be considered either alt-A or prime loans and did not have negative amortization options.
When you look at mortgage reset charts the ones with teaser rates are typically categorized as Option adjustable rate loans. If you look at the Credit-Suisse chart on Mish’s Blog you might notice that these are approximately the same order of magnitude as the sub-prime resets happening now.
I believe that the default rates on the option ARMS may rival the sub-prime defaults we are currently seeing.ParticipantI can speak for the loans I considered/took circa 2003-2005. In one case (2003) I had a 5/1 ARM, I/O loan on a refinance for an investment property. The rate was 5.625 and would have reset in Oct ’08 at LIBOR + 2.25. Based on current LIBOR the reset rate would be 5%.
However, as a prudent person I refied into a 30-year fixed at 6.25% late last year when short-term rates were a couple points higher. In the short run I would have been better off keeping my loan.
Pretty much the same terms were available in 2005. These would be considered either alt-A or prime loans and did not have negative amortization options.
When you look at mortgage reset charts the ones with teaser rates are typically categorized as Option adjustable rate loans. If you look at the Credit-Suisse chart on Mish’s Blog you might notice that these are approximately the same order of magnitude as the sub-prime resets happening now.
I believe that the default rates on the option ARMS may rival the sub-prime defaults we are currently seeing. -
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