[gogeo]

It's easy to say they're at fault, should have read the fine print and so on - yes, indeed they should have. The article states their Realtor gave assurances they trusted about rate changes and of course they wanted to believe that.

First mistake of many. Realtors don't understand finance (as a rule) and are possibly the worst person to ask. Besides, they have an inherent conflict of interest. I'm a former mortgage broker (6.5 years) quit beginning of August this year and I'm studying for my Series 7 license. Would anyone like to talk about this, or ask questions of someone who truly knows what they're talking about?

[RockinRight]

As a mortgage loan officer, I know MOST realtors don't know jack about finance.

[gleeaikin]

"Would anyone like to ask a question."

As I read the article I noticed that one problem was that their ARM was based on the London rate which I believe is called LIBOR. My equity line is based on the US Prime rate, and I think there are several others, but I don't remember as it has been some time since I bought real estate. I doubt many here know anything about these. Can you explain what they are called and what the differences are?