slamminshaun
Member
- Joined
- Jan 11, 2009
- Messages
- 93
Regarding the Alt-A loans, many of them will readjust soon. As some of you pointed out, rates are low......for now. But will the rates stay low forever? Of course not. That's when you'll see the problem exposed and the defaults begin to pick up momentum. Unless, of course, banks want to fix a low rate for them now before that happens.
The Option ARM's will default at a rate of over 70% easily. No matter how low rates are, they will be nowhere near the initial teaser rates most Option ARM's have (1% or 2%).
With the mortgage crisis getting worse before it gets better, you need to REALLY think about that before you go blowing your money on a rental home. If the mortgage crisis gets worse and more foreclosures happen, what direction do you think prices will go?
The Option ARM's will default at a rate of over 70% easily. No matter how low rates are, they will be nowhere near the initial teaser rates most Option ARM's have (1% or 2%).
With the mortgage crisis getting worse before it gets better, you need to REALLY think about that before you go blowing your money on a rental home. If the mortgage crisis gets worse and more foreclosures happen, what direction do you think prices will go?
