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Old 06-16-2009, 02:16 PM
 
231 posts, read 879,702 times
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I found this statement on Tech Ticker -

"The subprime wave of defaults is basically over. Now the question is, what about all the other types of mortgages? You know, Option ARM, Alt-As and of course, good old fashioned prime mortgage.

The big wave of Option ARM resets has yet to come, and given the drop in home prices, refinancing won't be realistic. Let's hope the homeowners can afford their new monthly payments."

Does anyone know when this wave of Option ARM resets is supposed to occur?
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Old 06-16-2009, 03:12 PM
 
4,982 posts, read 12,662,302 times
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Quote:
Originally Posted by jmax View Post
I found this statement on Tech Ticker -

"The subprime wave of defaults is basically over. Now the question is, what about all the other types of mortgages? You know, Option ARM, Alt-As and of course, good old fashioned prime mortgage.

The big wave of Option ARM resets has yet to come, and given the drop in home prices, refinancing won't be realistic. Let's hope the homeowners can afford their new monthly payments."

Does anyone know when this wave of Option ARM resets is supposed to occur?
Been happening for a while and will probably continue.
Can't believe people 'sold' these and can't believe borrowers accepted them.
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Old 06-16-2009, 05:12 PM
 
190 posts, read 378,137 times
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Ahh, they are going to start resetting in late '10 and '11 - the tidal wave hasn't yet begun ( see graph):

Click image for larger version

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Old 06-16-2009, 07:32 PM
 
1,153 posts, read 3,278,025 times
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Default How to calculate or arm mtge that will be changing in july

......wondering how this is determined.........what prime rate is at current time is how i guess it is determined? mtge right now is 89k and current mtge pymnt is @900.00
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Old 06-17-2009, 01:02 AM
 
Location: central, between Pepe's Tacos and Roberto's
2,086 posts, read 6,391,475 times
Reputation: 958
Quote:
Originally Posted by deeds View Post
......wondering how this is determined.........what prime rate is at current time is how i guess it is determined? mtge right now is 89k and current mtge pymnt is @900.00
Look at your closing package. There will be an Adjustable Rate Mortgage Rider. That should explain what the index (most likely 1 yr LIBOR) and the spread (most likely 2.25%) are. What I've seen in many cases over the last few months is that loans that are now adjusting are actually droppin in rate due to the low rate of the indices.
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