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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 (26522)	2/15/2005 7:20:47 PM
From: ild	Respond to of 110194

This link shows that you can get 5/1 Libor ARM at 5.000% with no points. ditech.com Most people who took 5/1 Libor ARMs in the last couple years are still paying between 4 and 5%. As I understand very few have been taking straight ARMs. HELOCs are different. Rates on them have gone up. As a reference Citibank advertises Prime-0.25% for life myhomeequity.com

To: russwinter who wrote (26522)	2/16/2005 12:47:20 AM
From: mishedlo	Read Replies (2) \| Respond to of 110194

If we took the mid month Libor rate of 3.03 add the 2.75 margin, we get 5.61. It's 5.78 on the 1 CMT. So that's the new rate on anybody readjusted next month on an ARM. I suppose they could just pay the new rate, but I'm wondering if they might not just refi to the 30 at 5.5% and extract some cash to pay groceries, and heating bills? Seems reasonable to me, the great American Bubble dream lives on, even if a tad more expensive. I think the 30 year need to get up to 6% to choke this off. I thought we debunked that 2.75 long ago. Mine is 1 5/8 I doubt anyone but the worst of credit risks is over 2 Mish