Monday, July 31, 2006

A Reckoning With Risk: Will adjustable-rate loans lead to record foreclosures?

By Alex Markels
Posted Sunday, July 30, 2006

Call it the worst worst-case scenario.

The interest rate on your adjustable-rate mortgage jumps just as the housing market enters a prolonged slump. Then something really bad happens: You lose your job. There's a medical emergency. You get divorced. You fall behind on your mortgage payments, and the bank forecloses on your home.

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