The Residential Real Estate Crash Index Message Board

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Strategies & Market Trends : The Residential Real Estate Crash Index

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To: Skeeter Bug who wrote (233836)	12/21/2009 1:06:18 AM
From: Cal Amari	Read Replies (1) of 306849

I am not so sure that the resets will be going to lower than "teaser" rates. I suspect that reset terms are all over the map. Most mortgage holders were not terribly concerned about resets given the then-prevailing assumption that folks could just refi at the time the reset came due. A friend of mine in the Bay Area just refinanced his ARM into a 30 year fixed loan after a nasty reset. The killer for him was having to pony up OVER $110K in total - mainly to pay down principal to get to 80% LTV, but also including origination points. He and his spouse are both working and able to pay the loan. With SoCal unemployment still rising (and the easy money in real estate and mortgage finance on the wane), a lot of folks are going to have a hard time paying their mortgages - whether teaser or reset (but especially reset). All IMO, of course.

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