Saturday, May 27, 2006

Adjustable Rate Mortgages

Atrios is right now as he was right before. All the people who opted for adjustable rate mortgages when interest rates were in the cellar are now feeling the pain. I know that the little money we've taken out of our equity line is causing us to pay more in interest each month.

What's worse is the people who bought houses with interest-only loans because it was all they could afford. In a very short time, most of these are going to become adjustable rate mortgage as well.

Can you see what's going to happen?

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