Alt-A and Option ARMS resets to begin in March 2010.

By Daniel at 26 January, 2010, 1:44 am

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My neighbor just received his first ARM reset notice, due to take effect March 1. His payment was $970/month. The new interest rate requires his payment to reset to $2700/month, nearly tripling his mortgage payment. Multiply that times several million homes due to reset between March 2010 and June 2012. The number of mortgage resets during that period will be nearly double the mortgage resets between 2007 and 2008. Very ugly picture!

- sbenard