Coronavirus (COVID-19) Discussion Thread

[sethnintendo]

Bofferbrauer2 said:

sethnintendo said:

I thought people learned their lesson with variable rate mortgages back in 2008.   Adjustable rate mortgages should be banned.

That being said I don't see USA raising rates for at least a year or two.  However whenever rates do go up the payments go up and then shit happens.

You get those anywhere in the world and in most countries, there's no problem with them. The Problem in the US is that they are not linked to the rates from the central bank or capped in any way. Mine never went past 4.65% but dropped as low as 2.25% yearly rate during the 8 years I was repaying my loan.

Oops I guess just speaking from experience in USA where rates went to 8-10 percent or even more.   Also didn't help that some banks/lenders weren't verifying income.  They verify income now but don't think there was a cap put into place on adjustable rate mortgages here.