Perhaps this is old and these loans aren't actually available anymore. But just for fun, I wanted to compare the "minimum payment" option ARM (which according to Businessweek is paid by 80% of borrowers) to a 30 year fixed jumbo loan.
Option ARM/fixed payment = 35%
And in other news, California home prices have tripled in the last 8 years.
Subprime is really not the end of the story. Option ARM loans were made to borrowers with perfect credit, and they will default, too.
![](https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEiQqqxwYS6sjwcAVbLol99JjutHYQ7Z5UA-r983oPsqCEqoJ1KjNgvQ0vmL5-5fKtZyZq-8GmxrCb8JmFb6d50uBNX9F_z91prENOJ66DWm9ynWuq59MHhvnulSzDYE1d2smKle/s400/Option+Arms,+Mortgage+loan,+Mortgage+Interest+Rates,+Refinance+Rates,+Mortgage+Rate+-+Mozilla+Firefox+9292008+121205+AM.jpg)
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