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nooneParticipant
There’s really not enough information in that article.
Though there are some types of loans that would only go up about $70 per month if they reset now, those same loans would only have gone up about $70 if they reset in December. The type of loans that would have reset by $450 in December will still reset by about $450. The mortgage interest rates have hardly changed. They were down at the beginning of the year, but are back up now. Some mortgage rates are even higher than they were in December
http://mortgage-x.com/trends.htm
Even the next paragraph in that article says “others still face a rate shock because they had an artificially low introductory rate”
Those loans that are going up by several percentage points are doing so because they started out with the “teaser” rates that the article mentions. You are correct that the interest rate on ARMs continue to fluctuate even after the introductory period, generally this is annually. The interest rate changes after the introductory period will not be as great. Usually there is a cap on how much the difference can be from one year to the next regardless of what the prime rate does.
So basically if the borrower can survive the initial large jump, then it is likely that they can survive the smaller increases (or decreases) that come in the future.
nooneParticipantThere’s really not enough information in that article.
Though there are some types of loans that would only go up about $70 per month if they reset now, those same loans would only have gone up about $70 if they reset in December. The type of loans that would have reset by $450 in December will still reset by about $450. The mortgage interest rates have hardly changed. They were down at the beginning of the year, but are back up now. Some mortgage rates are even higher than they were in December
http://mortgage-x.com/trends.htm
Even the next paragraph in that article says “others still face a rate shock because they had an artificially low introductory rate”
Those loans that are going up by several percentage points are doing so because they started out with the “teaser” rates that the article mentions. You are correct that the interest rate on ARMs continue to fluctuate even after the introductory period, generally this is annually. The interest rate changes after the introductory period will not be as great. Usually there is a cap on how much the difference can be from one year to the next regardless of what the prime rate does.
So basically if the borrower can survive the initial large jump, then it is likely that they can survive the smaller increases (or decreases) that come in the future.
nooneParticipantThere’s really not enough information in that article.
Though there are some types of loans that would only go up about $70 per month if they reset now, those same loans would only have gone up about $70 if they reset in December. The type of loans that would have reset by $450 in December will still reset by about $450. The mortgage interest rates have hardly changed. They were down at the beginning of the year, but are back up now. Some mortgage rates are even higher than they were in December
http://mortgage-x.com/trends.htm
Even the next paragraph in that article says “others still face a rate shock because they had an artificially low introductory rate”
Those loans that are going up by several percentage points are doing so because they started out with the “teaser” rates that the article mentions. You are correct that the interest rate on ARMs continue to fluctuate even after the introductory period, generally this is annually. The interest rate changes after the introductory period will not be as great. Usually there is a cap on how much the difference can be from one year to the next regardless of what the prime rate does.
So basically if the borrower can survive the initial large jump, then it is likely that they can survive the smaller increases (or decreases) that come in the future.
nooneParticipantThere’s really not enough information in that article.
Though there are some types of loans that would only go up about $70 per month if they reset now, those same loans would only have gone up about $70 if they reset in December. The type of loans that would have reset by $450 in December will still reset by about $450. The mortgage interest rates have hardly changed. They were down at the beginning of the year, but are back up now. Some mortgage rates are even higher than they were in December
http://mortgage-x.com/trends.htm
Even the next paragraph in that article says “others still face a rate shock because they had an artificially low introductory rate”
Those loans that are going up by several percentage points are doing so because they started out with the “teaser” rates that the article mentions. You are correct that the interest rate on ARMs continue to fluctuate even after the introductory period, generally this is annually. The interest rate changes after the introductory period will not be as great. Usually there is a cap on how much the difference can be from one year to the next regardless of what the prime rate does.
So basically if the borrower can survive the initial large jump, then it is likely that they can survive the smaller increases (or decreases) that come in the future.
June 9, 2008 at 3:56 PM in reply to: Rich Toscano unveiled – is this what you thought he looked like? #220465nooneParticipantSpeaking of his TV appearances, here’s a link to Rich on KSWB’s Take 5. Most of us have seen it, but it’s worth another look if you haven’t watched it in a while. Where does Rich keep that crystal ball?
Lee Sterling (Help-U-Sell): “There really is no bubble.”
Classic!
June 9, 2008 at 3:56 PM in reply to: Rich Toscano unveiled – is this what you thought he looked like? #220562nooneParticipantSpeaking of his TV appearances, here’s a link to Rich on KSWB’s Take 5. Most of us have seen it, but it’s worth another look if you haven’t watched it in a while. Where does Rich keep that crystal ball?
Lee Sterling (Help-U-Sell): “There really is no bubble.”
Classic!
June 9, 2008 at 3:56 PM in reply to: Rich Toscano unveiled – is this what you thought he looked like? #220577nooneParticipantSpeaking of his TV appearances, here’s a link to Rich on KSWB’s Take 5. Most of us have seen it, but it’s worth another look if you haven’t watched it in a while. Where does Rich keep that crystal ball?
Lee Sterling (Help-U-Sell): “There really is no bubble.”
Classic!
June 9, 2008 at 3:56 PM in reply to: Rich Toscano unveiled – is this what you thought he looked like? #220608nooneParticipantSpeaking of his TV appearances, here’s a link to Rich on KSWB’s Take 5. Most of us have seen it, but it’s worth another look if you haven’t watched it in a while. Where does Rich keep that crystal ball?
Lee Sterling (Help-U-Sell): “There really is no bubble.”
Classic!
June 9, 2008 at 3:56 PM in reply to: Rich Toscano unveiled – is this what you thought he looked like? #220629nooneParticipantSpeaking of his TV appearances, here’s a link to Rich on KSWB’s Take 5. Most of us have seen it, but it’s worth another look if you haven’t watched it in a while. Where does Rich keep that crystal ball?
Lee Sterling (Help-U-Sell): “There really is no bubble.”
Classic!
nooneParticipantI would echo Itokuda’s answer. Of course the problem then becomes defining “the income necessary to service the mortgage payments.” Would this be PITI <= 25% gross income? 30%? 40%?
nooneParticipantI would echo Itokuda’s answer. Of course the problem then becomes defining “the income necessary to service the mortgage payments.” Would this be PITI <= 25% gross income? 30%? 40%?
nooneParticipantI would echo Itokuda’s answer. Of course the problem then becomes defining “the income necessary to service the mortgage payments.” Would this be PITI <= 25% gross income? 30%? 40%?
nooneParticipantI would echo Itokuda’s answer. Of course the problem then becomes defining “the income necessary to service the mortgage payments.” Would this be PITI <= 25% gross income? 30%? 40%?
nooneParticipantI would echo Itokuda’s answer. Of course the problem then becomes defining “the income necessary to service the mortgage payments.” Would this be PITI <= 25% gross income? 30%? 40%?
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