Homebuyers turn to riskier adjustable-rate mortgages
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- เผยแพร่เมื่อ 30 เม.ย. 2024
- As mortgage rates remain above 7%, some would-be homebuyers are looking for another option to help them buy: an adjustable-rate mortgage. Scott Budman reports.
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Here we go again 😊
That's what im about to say 😅
Sounds like mid 2000s again. Hope they read the fine print. 😢😢😢
they dont.
This is what will start a depression
Most countries do it this way.
We’re already on our way. Small business real estate is over 50% delinquent. Not a good sign. Commercial will get hit as inflation continues. Rates will need to rise as a result. Followed by zombie corporations BK’ing 5-10% of of the publicly traded companies. Then low income will get kicked in the teeth as the middle class completely disappears. The wealthy have seen this coming and are currently moving their money around before the panic hits the public. Numbers don’t lie.
@@Korloko which countries
@@middleguy1776 Canada and the UK rely on adjustable rate mortgages. The US loves to subsidize home owners and fixed rates are one way we do that.
@@middleguy1776 Fixed rates are great for homeowners but don’t really make sense for banks. Either they lock you in at a low rate (which hurts them in the long run) or you buy when rates are high then refinance at a lower rate in the future.
Used to be a loan officer would only recommend these if you’re staying in your home for a limited time or if you’re willing to bet the rate will be lower later. These can be a good option but incredibly risky. When you get vetted for an arm they look at the highest possible rate for qualification but it doesn’t take into account things like inflation or job changes only your current circumstances.
Would it make more sense to buy at a fix rate at current rates and then refinance once the rates go down rather than going with an adjustable/variable rate 🤔
All people considering signing a variable rate mortgage should watch the “trilogy”:
1. The Big Short (the individual details)
2. Margin Call (how the firms reacted)
3. Too Big To Fail (the government response)
These films show how variable rate mortgages almost destroyed the world economy.
Except now, the banks are bigger and regulations have been relaxed. I’m glad that I invested in Cambell’s Soup. Not the company, I have pallets of the stuff in my garage. Pop top, water already inside, enough preservatives to last forever.
Good luck
they never learn.
Great movies people should watch. But dont lay all the blame on ARMs, they are probably the most innocent of the factors... negative amortization loans were a far worse mortgage product. Out right fraud (no income, no job mortgage loans), rating agency fraud, rampant speculation, overall greed, and no regulation whatsoever all combined back in 2006-2008
Somebody please tell these people about the’08 recession.
No lessons learned from 2007. If you can’t buy a home with 20% down and a 15 year mortgage, you can’t afford it.
Calm down Dave Ramsey, with that opinion literally like majority of people wouldn’t have homes
So basically 95% of first time homeowners cant afford homes. Got it.
@@gringoboy701basically.
These people are betting interest rates go down when the new president is elected.
Take a look at Business CD rates. The big interest rates are for terms
They need to look at Canada to see that this is going to be so bad
Interest rate higher than it is now will bankrupt the US government with 35T, increasing 1T every 100 days. The US debt interest is already more than our defense budget. Why (how) can the rate go higher? What is the risk? If the US gov defaults, the mortgage rate wont be what you are worried of
The U.S. has already defaulted on 20% of its currency in the last 4 years. I.e., inflation
What could go wrong
Wow, what’s next. Bringing back Interest Only Mortgage Loans. Lol. Suffering from Memory loss I guess.
You know ARM never went anywhere right? This isn't anything that they brought back.
I think my mother had an adjustable-rate in the 2000s. I remember her having to sell it so fast around 07'-08'
One way to hedge that interest rate risk is to have assets that are also interest rate sensitive. Good luck!
Wait, wasn't it just a few years ago that fixed rates were less then 3%, what happened ?
Feds raised the rates due to inflation.
I think Canada does this method. however in America rite now makes no sense
You will be remembered.....
Are people forgetting that you can always refinance into a lower rate if rates go down?
if
Hope there no ballon payment
N so it begins .. 2008 all over again. Also You cannot refinance if you have over paid for your home and loss equity. Just saying.
Relief up front Long term Gamble !
Omg. NOOOOOooooooo!!
Don’t. Freakin. Do. It. Just don’t. Just refinance when rates go down.
I have seen people do this and come out way ahead of folks with fixed mortgages. It just depends.
beginning of 08 all over again.
Its a trap.
We’re cooked
People are stupid if they take adjustable rate mortgage and they deserve to be foreclosed on
That’s stupid. Don’t do it
Hahahaha
lol wtf
It’s California no one cares 🔥
same pig, different lip stick
If Brandon wins, rates will be even higher.
brandon? what are you talking about?
@@rabidmarmot FJB
LOL we have 2.75 LMAO