My New Outside Blog: www.lasvegasmtg.com report: $400 Billion Adjustable Rate Mortgages to reset.

www.lasvegasmtg.com report: $400 Billion Adjustable Rate Mortgages to reset.

www.lasvegasmtg.com Report: $400 Billion Adjustable Rate Mortgages to reset.

by John Le Francois

Interest Rates for ARMSLinda Sterns a Journalist for Rueters this weekend reported that $400 Billion, that's Right $400 Billion in Adjustable rate Mortgages will be starting to reset. In 2006 at the height of home purchases the adjustable rate mortgage was the loan of choice and the most widely used ARMS were the two, three and five year ARM. In the last five years since the housing bubble started we have seen over 5 million homes foreclosed on across the United States. The next round may start when the five year ARMS start to adjust.

In the next 13 months we will see over $20 Billion in loans adjust every month. While some of these resets would be a positive for the borrower seeing an average of $300 to $500 per month decrease at current rates some will not due to the specific ARM they hold. Borrowers that had 5 Year ARMS that were Interest Only payments will se an increase in their mortgage payment.

Underwater Homes With 1 in 25 homes are under water across the nation and in Las Vegas that number is down to 1 out of 2 homes are upside down there is little chance of converting to fixed rate at the current low interest rates. Could we see a next wave of foreclosures with the adjustment of the 5 year ARM? Could we see more strategic defaults coming due to the ARMS resets? Only time will tell.

 

         Kenny Salame                                                                                                  Equal Housing

Kenny Salame
Senior Loan Officer
All Western Mortgage Inc.
8345 W. Sunset Rd.
Suite 380
Las Vegas, NV, 89113
US                            
Mobile: 702--506-3301
Direct: 702-947-0609
Office: 702-369-0905
Fax: 702-952-0887
ksalame@allwesterm.com
 
 
 
 
 
 
Comment balloon 0 commentsKenny Salame • May 15 2011 06:12PM

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