Adjustable Rate Mortgage Reset Schedule (GRAPH)

By
Real Estate Mortgage Broker with Benchmark Mortgage of Louisiana

ARM graph

This graph is a good indicator of what is to come (and when).  It shows that subprime ARM resets will hit their peak in the next few months, while the Option ARMs, Prime ARM, and Alt-A ARM resets will peak in the next 36 months or so.

The sheer numbers are staggering, especially in the subprime market:  $35 billion in subprime ARMs will reset in the coming months, and I believe that these are the problem loans.  I'm sure that a sizeable amount of these loans are high LTV mortgages, and in a declining market, these loans will be nearly impossible to refinance, whether FHASecure is available or not.  Keep in mind that HUD estimates that only 250,000 borrowers will be able to qualify for FHASecure.

I guess the good news is once we get past the next 6 months or so, the market should be in better shape.  Most Option ARMs, Prime ARMs, and Alt-A ARMs have lower LTVs and higher credit scores, and for the most part, these borrowers should be in a better position to refinance to a fixed rate.

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the cat to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Tags:
adjustable rate mortgage
arm
fixed rate mortgage
benchmark mortgage
louisiana mortgages

Comments 19 New Comment

Anonymous
Post a Comment
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the house to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Anonymous #15
Anonymous
Jeff Rizdraver

Mark, here's a better graph illustrating the time schedule better:

http://www.doctorhousingbubble.com/wp-content/uploads/2009/06/businessweekoptionarm1.jpg

You can see that 2011 is going to be a hell of a year.

July 02, 2009 10:06 AM
Anonymous #16
Anonymous
Wondering

So, how many months after the peak can we expect to see foreclosures? Does anyone know the average amount of time it takes to foreclose in California? Thank you.

September 18, 2009 09:27 PM
Rainer
12,519
Gabriele Buonacorsi
Coldwell Banker Premier Realty

THANKS FOR THE GRAPH, IT IS HELPFUL.

October 19, 2009 12:04 PM
Anonymous #18
Anonymous
Homey

Here it comes!

December 13, 2009 03:39 PM
Rainer
21,653
Kevin Cottrell
Austin Real Estate Today

Thankfully, foreclosures are not a major factor in the St louis market. 

January 21, 2010 05:58 AM
Anonymous
Post a Comment
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the graph to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase:

Rainer
11,647

Gareth Bourriague

Benchmark Mortgage
Ask me a question
*
*
*
Spam prevention

Accessibility option: listen to a question and answer it!

To submit the form,
drag the graph to the circle on the side.

Type below the answer to what you hear. Numbers or words, lowercase: