our rate is fixed at 6% i feel for these folks with a bad credit history...
the morons who bought my old house in Orange County took one of those out to the tune of almost a million dollars and they bid it up that high to begin with.
Interest-Only variable rate mortgage to the tune of almost a million, yeah you hicks have fun with that.
We bought our house with an ARM, too, and then refinanced on a fixed-rate mortgage later. But, with our ARM, the rate couldn't be raised more than once a year, and it was limited to a rise of half a point every year (if I remember correctly). In fact, more often the rate fell.
Sun may rise in east tomorrow...yawn.
This is what happens when people do two things: Live outside their means, and use their homes for ATM machines. We have owned three homes, this last one is paid for. All through our lives we never let our credit get bad; we worked four or five jobs between us and did without to avoid it. Even if those jobs were menial. Keeping our credit rating perfect has saved us thousands and thousands of dollars, but making sure we weren't over extended was the wisest of all.
If folks ever took the time and effort to figure out the savings they could realize by paying off their 30 year loans in 10 or 15 years --- they would be shocked..
It doesn't take too much additional each month to accomplish that.....
Semper Fi
I remember years ago when mortgages shot up to 17%. When mortgage rates dropped, the bottom had fallen out of the housing market also (I know the two aren't supposed to occur together but in the 80's it did in NY).
People I knew with high rates had houses they couldn't refinance with lower rates because they were upside down in their mortgage. It was a sad situation for young couples I knew.
5% 15 year fixed bump!