Last year, most borrowers losing their homes were on sub-prime adjustable-rate loans
Prime, adjustable-rate loans
have higher delinquency rates than prime, fixed-rate mortgages and currently average 0.
Greater lender discounts for introductory adjustable-rate mortgage rates and the increasing popularity of hybrid ARMs relative to one-year adjustable-rate loans
has resulted in a decline in the share of ARMs in overall mortgage lending, according to a survey by Freddie Mac.
Noted the Bloomberg News service on April 25: "Mortgages entering foreclosure jumped 72 percent during the first quarter from a year earlier, as higher interest rates increased monthly payments and strained the budgets of homeowners with adjustable-rate loans
Foreclosure activity in California and other Western housing markets is on the increase in part because high-risk adjustable-rate loans
are beginning to reset to fully amortized payment schedules, a property tracker said Monday.
Recently, NYMC introduced jumbo mortgages pegged to the London Interbank Offered Rate (LIBOR), enabling homeowners to obtain adjustable-rate loans
with current rates of less than three percent.
The bonds backed by adjustable-rate loans
were AAA, guaranteed by MBIA.
Transactions with a number in their series name comprise of fixed-rate loans, and transactions with a letter in their series name comprise of adjustable-rate loans
Although interest-only and adjustable-rate loans
can initially save a typical homebuyer hundreds of dollars in monthly payments, such loans leave borrowers vulnerable to sharply higher payments when interest rates adjust or principal payments start to come due, said Nicolas P.
More and more people have been using interest-only or adjustable-rate loans
The underlying adjustable-rate loans
consist of approximately $550 million of New Century's recent production.
by mortgagors who claim to have been overcharged on their adjustable-rate loans