It's a variable rate mortgage with an initial period on a low fixed rate. Common in the UK, but traditionally in the US mortgages were on fixed rates for the entire duration of the loan. One of the ways to sucker the underclass into buying houses was to offer this new-style temporary fixed rate deal - and there's loads who'll be coming off the fixed rate in the next year or two, and they may not be able to afford variable rate - especially if rates have to rise in a credit-starved market.
just a thaught that before you actually take that big leap in to actually applying for a bad credit mortgage loan for yourself, experiment your super to actually extortion your self with (more than) enough information to just guide you through the debt restructuring process.
5 comments:
Wait for 2012, which I've been mentioning since 2006.
What, pray, is an "option ARM"?
Hi Elby
It's a variable rate mortgage with an initial period on a low fixed rate. Common in the UK, but traditionally in the US mortgages were on fixed rates for the entire duration of the loan. One of the ways to sucker the underclass into buying houses was to offer this new-style temporary fixed rate deal - and there's loads who'll be coming off the fixed rate in the next year or two, and they may not be able to afford variable rate - especially if rates have to rise in a credit-starved market.
just a thaught that before you actually take that big leap in to actually applying for a bad credit mortgage loan for yourself, experiment your super to actually extortion your self with (more than) enough information to just guide you through the debt restructuring process.
Yep - the variable rate will be loads of fun for the poor.
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