Will the adjustable rate mortgage increase the number of US families at risk of foreclosure?
Question:
Answer:
Potentially, any mortgage runs the same risk. If people made bad loans, they are at risk.
This is the nature of banking, incidentally.
EDIT: Steve C., who "put them into the homes?" I didn't know anyone but me put me into a home.
That's what my buddies in the real estate business says!
It already has.
Probably. There's a lot of distance between the ability to pay and the ability to increase payments. Eventually, all these people that took out these foolish mortgages will be in trouble.
Not just adjustable rate mortgages, but when wages don't keep up with the cost of living, more people will lose their houses.
I mean, I don't know what people think will happen if healthcare costs keep skyrocketing, gas prices keep skyrocketing and wages keep stagnating.
It is already happening, at least here in NC...people were put into houses they could not afford, and now are unable to make their mortgage payments. Very sad, as many of the people did not know the complexities of what they were getting into.
ALL BECAUSE OF DEMOCRATS
If they were stupid enough to get an ARM when interest rates over the past few years have been at historic lows then they are more at risk.
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