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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 (27686)	3/3/2005 8:44:49 AM
From: loantech	Read Replies (1) \| Respond to of 110194

< I'm particularly interested in the length of these teaser rates? On subprime weren't they typically one or two years?> Russ some of the very low rates advertised in the 1-2% range may change monthly. A lot of the LOC's or equity lines that people take out do adjust monthly. These are the 20% of the 80/20 loans.Some have caps in the 18-20 range. <ng> The primary vehicle for subprime is the 2/28. Fixed for 2 years with a two year early pay of penalty. Some 3/27 loans but less of them. Rarely do you see 30 year fixed. The IO lonas are usually fixed for 3 years some for 5 then they make up the neg amortization and are hit with the higher rate both at the same time. Hello! <g> The margins I look at may be .10-.25 higher on the libors than you list. Usually 2.25 and on the t bills 2.75. Hope this helps or at least confirms what data you already have. Tom