Look, while people who take out payday loans are too stupid to know what a bad deal they are, I find it difficult to believe that everyone who took out an option ARM wasn't aware of the basic fact that rates would go up if interest rates went up.
Look, while people who take out payday loans are too stupid to know what a bad deal they are, I find it difficult to believe that everyone who took out an option ARM wasn't aware of the basic fact that rates would go up if when interest rates went up.
Public school economics are simple, Republicians are for the rich, Democrats are good for you.
The ARM only would make sense when you were a few years away from paying off the mortgage, or if you knew that you would be selling out before the rates were to go up
UMMMMmmmmm, free money. Not.
These idiots not only applied for an arm loan, the went with a negative amortization loan where they have the option to made the payment based on the "2.2%" interest rate. The actual rate is higher. The difference in the 2 payments is added to the principal balance. Maybe if he read the fine print on the 3000 disclosures the federal gvt makes banks/brokers to send out before the loan is closed, he would have realized what he was getting into. Anyone foolish enough to belive they are getting a 2% interest rate on a mortgage, deserves what they get.