The economy is in dire straits, but some mortgage experts believe it will get even worse... The so called 'second wave' of the mortgage crisis is predicted to be even worse than the original subprime crisis. The circumstances are looking worse by the day, with unemployment rising, home prices going down and option ARM interest rates likely to boom in the coming months.
The housing market is still not up to normal and it's not getting better anytime soon. Prices are dropping almost daily. This could mean a big foreclosure boom in the next couple of months. The next victims of this crisis will probably be the option ARM mortgages.
With the option ARM mortgage interest rates likely to go up soon, we might be seeing another boom in foreclosures in the following months.
With the current conditions however, the ARM interest rates are likely to go up in a big way, causing the monthly payments to increase greatly.
Because of lower home prices, many people will discover they owe a big debt on a house that's worth a lot less than they think. Combine this with higher unemployment rates, and a second tidal wave of the economic crisis is on the horizon.
The housing market is still not up to normal and it's not getting better anytime soon. Prices are dropping almost daily. This could mean a big foreclosure boom in the next couple of months. The next victims of this crisis will probably be the option ARM mortgages.
With the option ARM mortgage interest rates likely to go up soon, we might be seeing another boom in foreclosures in the following months.
With the current conditions however, the ARM interest rates are likely to go up in a big way, causing the monthly payments to increase greatly.
Because of lower home prices, many people will discover they owe a big debt on a house that's worth a lot less than they think. Combine this with higher unemployment rates, and a second tidal wave of the economic crisis is on the horizon.
About the Author:
Adviseur Mijn writes articles about mortgages in English and articles about hypotheek and hypotheek oversluiten in Dutch.
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