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08-02-2024, 04:19 PM | #13936 |
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This made me curious about how common adjustable rate mortgages are. I never considered one when I bought my house a million years ago because the risk bothered me. I wondered if others feel the same.
According to the Fed, about 8 percent of households have adjustable mortgages. https://www.stlouisfed.org/on-the-ec...rate-mortgages Surprisingly, it's more common among high-income households than low-income households according to that article. I would have assumed that lower-income households would be more willing to take the risk because they had no choice. And if you look at fixed-rate mortgages as an approximation, rates are about 2.2 percent higher than they were five years ago according to this chart: https://fred.stlouisfed.org/series/MORTGAGE30US It seems like there's a little window of people for the next two years who'll get screwed by higher rates, but then they'll go down for people who bought after that. You'll also get a massive wave of people who got high fixed-rate loans over the past three years, and they'll be refinancing. I don't think it'll be a large percentage of people who got adjustable rates in that two-year window and are about to get sodomized. Maybe that's enough to cause problems for the economy with defaults or maybe not. I don't know that kind of stuff. But I do think there'll be a lot more people who'll benefit by refinancing fixed loans down. It's an interesting thing to think about. |
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08-02-2024, 04:22 PM | #13937 | |
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Location: Scott City KS
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Quote:
But are there really fools out there with adjustable rate primary mortgages? There was absolutely no chance in any primary mortgage I've ever had would stick that bitch on an ARM. I had to fight to lock my farmland mortgage. I don't want any of that heat. Maybe young morons that have never seen interest. Maybe. |
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08-02-2024, 04:24 PM | #13938 | |
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I guess right now I wouldn't feel too bad about an ARM. Save fees for a refinance. But my ass would have to buy a shoebox in a gutter if I were going to give up my mortgage today. |
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08-02-2024, 04:28 PM | #13939 |
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Definitely some rough days...yikes...
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08-02-2024, 04:30 PM | #13940 |
Politically Incorrect
Join Date: Feb 2009
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Fed is ALWAYS wrong.
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08-02-2024, 04:30 PM | #13941 |
Cheat Death
Join Date: Nov 2007
Location: Land of Drincoln
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The **** would you go with a variable rate loan 4 years ago?
How low did they think it would get? |
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08-02-2024, 04:31 PM | #13942 | |
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When I bought my house, I got a fixed rate that was over 7 percent. Rates kept going down and I kept refinancing. I think I was paying at or under 3 percent when I finally paid the house off. Maybe I should have done ARMs for 20 years. But I didn't know that we would have 20 years of declines. At some point I got a HELOC at some ridiculously low rate, and that's what I used for my last big rehab project on the house (redoing the kitchen, adding a deck, finishing off the third floor, etc.) I think it might have been under 2 percent, so I paid off the main mortgage before I paid that one off. At some point the lender stopped offering it, and that was a sad day. |
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08-02-2024, 04:34 PM |
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08-02-2024, 04:36 PM | #13943 | |
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I had no idea rates were that high. |
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08-02-2024, 04:37 PM | #13944 |
Cheat Death
Join Date: Nov 2007
Location: Land of Drincoln
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30 years were in the 3’s 4 years ago
If you took an ARM in 2020 then you deserve it |
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08-02-2024, 04:38 PM | #13945 | |
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08-02-2024, 04:40 PM | #13946 |
Mod Team
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08-02-2024, 04:49 PM | #13947 |
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08-02-2024, 05:25 PM |
Hog's Gone Fishin |
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08-02-2024, 05:36 PM |
Hog's Gone Fishin |
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08-02-2024, 05:37 PM | #13948 | |
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08-02-2024, 05:41 PM |
Hog's Gone Fishin |
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08-02-2024, 05:56 PM | #13949 |
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08-02-2024, 07:59 PM | #13950 | ||
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