Silverbird
02-07-2008, 10:09 AM
Ouch, when one of these go off!
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Exploding ARMs Roil Bernanke's Drive to Calm Markets (Update1)
By Bob Ivry and Jody Shenn
Feb. 7 (Bloomberg)
The estimated 1 million homeowners with $500 billion of option ARMs are beyond the help of interest-rate cuts by Federal Reserve Chairman Ben S. Bernanke. While subprime borrowers face an average increase of 8 percent or less when their adjustable-rate mortgages reset, option ARM homeowners may see their monthly payments double after their adjustments kick in.
``We call them neutron loans because they're like a neutron bomb,'' said Brock Davis, a broker with U.S. Express Mortgage Corp. in Las Vegas. ``Three years later the house is still there and the people are gone.'' http://www.bloomberg.com/apps/news?pid=20601109&sid=azjDaDjddBE8&refer=home
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Exploding ARMs Roil Bernanke's Drive to Calm Markets (Update1)
By Bob Ivry and Jody Shenn
Feb. 7 (Bloomberg)
The estimated 1 million homeowners with $500 billion of option ARMs are beyond the help of interest-rate cuts by Federal Reserve Chairman Ben S. Bernanke. While subprime borrowers face an average increase of 8 percent or less when their adjustable-rate mortgages reset, option ARM homeowners may see their monthly payments double after their adjustments kick in.
``We call them neutron loans because they're like a neutron bomb,'' said Brock Davis, a broker with U.S. Express Mortgage Corp. in Las Vegas. ``Three years later the house is still there and the people are gone.'' http://www.bloomberg.com/apps/news?pid=20601109&sid=azjDaDjddBE8&refer=home