Massachusetts
Thousands brace for mortgage rate jump
boston.com
More than 9 percent of all homeowners in Massachusetts with adjustable-rate home loans, about 10,000 borrowers, are facing larger housing payments when their mortgages reset to higher interest rates over the next three months, suggesting the state will continue to face high levels of foreclosures and loan delinquencies.
The total value of all those loans, according to data prepared for the Globe by First American LoanPerformance, a California business research firm, is $2.45 billion.
The number of mortgage rate resets will decline in 2008, but the amount is still sizable: 24,650 adjustable-rate mortgages, with a total loan value of $5.2 billion, according to the analysis.
These rate increases will add hundreds of dollars to homeowners’ monthly mortgage payments, and some housing specialists predict hundreds, and perhaps, thousands of borrowers will be unable to afford the higher costs. Mortgage rate resets are already fueling the record number of foreclosure proceedings filed this year in Massachusetts Land Court against delinquent homeowners. |
