Increasing Adjustable Mortgage Rates plus Increasing Property Taxes Will Devastate Homeowners
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This morning’s USA Today has an article highlighting the financial impact adjustable rate mortgages are having on homeowners. Here are a few selected quotes:
- Nearly 25% of mortgages “10 million ” carry adjustable interest rates. And most of them went to people with subpar credit ratings who accepted higher interest rates, according to the Mortgage Bankers Association.
* Last week, the Federal Reserve raised interest rates for the 15th time since June 2004 and signaled that at least one more increase is likely.
* The number of borrowers in trouble will rise this year and peak in 2007 and 2008 as the largest number of mortgages reset to higher rates, according to First American Real Estate Solutions, a real estate data provider.
* Already…… about one in five homeowners with a high-interest (subprime) ARM was at least 30 days late at the end of last year, according to the Mortgage Bankers Association. After 90 days, the foreclosure clock starts ticking.
* Of the 7.7 million households who took out ARMs over the past two years to buy or refinance, up to 1 million could lose their homes through foreclosure over the next five years because they won’t be able to afford their mortgage payments, and their homes will be worth less than they owe, according to Cagan’s research.
Could these loans be part of the contributing factors to the record levels of home foreclosures and personal bankruptcies reported here this weekend?
With increased costs for heating our homes and driving to work, what will adding an additional $1,000 to your property tax bill do homeowners with the adjustable rate mortgages?
Be careful who you vote for in tomorrow’s School Board election. The results will effect more than your wallet.
For a link to the article go to usatoday.com
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Guess who sells the mortgages.
None other than Adam Swanda!
Some crowd Swanda signed the letter with.
Montello is a used car salesman
O’Brien is a lawyer.
But not one of them is a realtor.
I remember back when I was young that people didn’t refinance at the drop of a hat. I see alot of people these days consolidating loans (i.e. car loans etc..) into their mortgages. So when their car is gone it is still on that 30 to 40 year mortgage. It seems to me anyway that people are not as smart with their finances as they should be. I forsee alot more of forclosures comming down the pipeline. They should teach a class on living within your means.