All the retards who went into bidding wars based on what their payments were going to be with a low interest rate are fucked. They went to the absolute last penny they could afford at say 2% interest. If that rate is at 3% when their mortgage is up for renewal, their new payments will be about 50% higher (assuming they keep the same amortization).
All the retards who went into bidding wars based on what their payments were going to be with a low interest rate are fucked. They went to the absolute last penny they could afford at say 2% interest. If that rate is at 3% when their mortgage is up for renewal, their new payments will be about 50% higher (assuming they keep the same amortization).
Renewal? You mean ARMs?
Renewal? You mean ARMs?
They locked into a 5 year (typically) term at the start of the mortgage. When that term is up, they renew for another term that locks in the interest rate and payments for a period of time usually between 1 and 10 years.
They locked into a 5 year (typically) term at the start of the mortgage. When that term is up, they renew for another term that locks in the interest rate and payments for a period of time usually between 1 and 10 years.
What proportion of the mortgages are realistically done this way vs. a fixed %?
What proportion of the mortgages are realistically done this way vs. a fixed %?
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