What else can you do?
I have covered most of the popular mortgages….from 2/28, 3/27, 5/25, 3/1, 5/1, 7/1, 10/1 ARMs, interest only ARMs, option ARMs, fixed rate loans, even 40 year mortgages on up to 100 year mortgages. We have looked at HELOC’s (home equity line of credit), seconds, 125% loans, sub 500 FICO score loans, stated loans, NINA loans (no income no asset), no doc loans, and more.
We have looked at the data for ARMs and option-ARMs. We have seen that in many ‘bubble areas’ ARMs are used well over 70% of the time. It doesn’t matter if the option-ARM is tied to the COSI, COFI, MTA or LIBOR…it is going to adjust or recast sometime. It doesn’t matter if the I/O period is 1 year or 5 years, it is going to adjust. When these loans adjust, people better have equity to refi, or the income needed to support the payment. When I see things like THIS, I think people just might be a little too comfortable with 50-100k in equity.
I have looked at the data, and compared it with my personal experiences, and nothing surprises me based on what I have seen. I have seen the option-ARM become 80-90% of the business at some of my broker shops. I have seen the way they are sold, and how many clueless borrowers fall for the ‘low payment’.
We have looked at income, inventories, and housing statistics. If I were in Vegas, I know where I would put my money on the direction I think things are headed…and I think many of you feel the same way.
That said, no great long post from me tonight. There are now over 160 active topics and over 1000 posts in the forums. Use the comments here, or the forums to chat back and forth over the weekend. Lots of good posts in there. It is worth checking out if it has been a while since you last stopped by…it has grown a lot!
As usual, I look forward to the comments and feedback!
Have a great weekend!
I am going to keep making my posts over here, but most of the comments are happening at the new site. Go to...
...if you would like to see more comments and activity. Don't forgot to check out the activity in the FORUMS!