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To: Sam Gamgee

Who in their right mind gets an adjustable rate mortgage if rate increases would put them in financial jeopardy?


26 posted on 11/24/2021 11:58:09 AM PST by lurked_for_a_decade (Imagination is more important than knowledge! ( e_uid == 0 ) != ( e_uid = 0 ). I Read kernel code.)
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To: lurked_for_a_decade

“Who in their right mind gets an adjustable rate mortgage if rate increases would put them in financial jeopardy?”

In the UK, I believe the standard type of mortgage is a 5-year ARM.

In the US, people are paying high housing prices because of the availability of cheap long-term mortgages.


30 posted on 11/24/2021 12:17:46 PM PST by Brian Griffin ( )
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To: lurked_for_a_decade

Were you around in 2008?


32 posted on 11/24/2021 12:23:08 PM PST by EEGator
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To: lurked_for_a_decade
Millions did so before the last major market adjustment circa ~2008. They did so because they assumed the market would continue to escalate and they would sell after a few months/years and reap windfall profits.

Some succeeded. Many didn't. Lehman Brothers, for example, didn't succeed.

44 posted on 11/24/2021 2:55:36 PM PST by LouAvul (Farewell America. We barely knew you. )
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To: lurked_for_a_decade

I keep forgetting the US mortgage market is different from Canada.


48 posted on 11/24/2021 3:48:02 PM PST by Sam Gamgee
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