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Mortgage Hidden Risk:

Shared by Niicss on Mon May 05, 2008 7:05 am
It is predicted that the home prices will continue to fall in the major markets in the US. In 2005 people got ARM with initial low interest rates but with the rate adjustment borrowers are facing more and more problems. But now 9 of 10 borrowers who got ARM initially, are refinancing into Fixed Rate Mortgage. Source: http://www.bloomberg.com/apps/news?pid=20601039&refer=columnist_wasik&sid=ajwkp5PmZd7o

Community Members Opinion

larry

Joined: 27 Jun 2007

Posts: 3322

474.67 Dollars($)

Posted: Mon May 05, 2008 11:20 pm Post subject:

Hi. I think the hidden risk is well exposed now. Everyone now knows why this financial crunch occurred in the mid last year and continuing till now. This is why borrowers are refinancing their Adjustable rate mortgage into fixed rate mortgage. Best of luck, Larry

Caron

Joined: 19 Jul 2005

Moderator
Posts: 1519
Location: florida

281.04 Dollars($)

Posted: Tue May 06, 2008 6:01 am Post subject:

It is indeed a risk if home prices continue to fall. I just wonder what's going to happen to those who are likely to default in areas where markets are on a decline. _________________ Mortgage Shopping made easy with booklet


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