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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: russwinter who wrote (13765)	5/13/2004 8:18:33 AM
From: re3	Read Replies (1) \| Respond to of 110194

wire hanger update : i was talking to my local dry cleaner, asked him about expenses going up...he said the wire hanger which last year cost him 8 or 9 cents canadian is now 15 cents canadian apiece...

To: russwinter who wrote (13765)	5/13/2004 8:34:16 AM
From: TH	Respond to of 110194

russwinter, Regarding the instrument for adjustment, I found this on the Rock website. "For adjustable-rate mortgage loans, the two most common indexes are the one-year, constant maturity-adjusted Treasury bill and the Eleventh District Cost of Funds Index (COFI), published by the Federal Home Loan Bank of San Francisco, a federally chartered thrift institution." And this little gem, which may imply that the first adjustment could be a larger increase than the increase in the index during the same period. I could be wrong about this, so please correct me if I have made a faulty assumption. "Initial rate" "The starting interest rate on an adjustable-rate mortgage loan, which is often below market ARM rates. The intent of a low initial rate is to assist homebuyers that may not otherwise qualify for a mortgage loan." The maximum cap for the life of the loan is 8%, but I could not find the maximum increase per adjustment period. Yes, a world of hurt is coming our way. Good trading. TH