High Rate Mortgages for Option ARMs Slow Housing Recovery

Shirley Breitmaier’s mortgage payment started out at $98 when she refinanced her three-bedroom home in Galt, Calif., in 2007. The 73-year-old widow may see it jump to $3,500 a month in two years.  Breitmaier took out a payment-option adjustable rate mortgage, a loan popular during the housing boom for its initially low minimum payments. According [...]

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Will Obama Mortgage Plan Sinking Home Financing

Ben Tracy reports on whom Obama’s housing plan will risk the mortgage lending system. 20% of U.S. homeowners with mortgage loans are “underwater,” meaning they owe more money to their mortgage lender than their property is worth. Borrowers who have mortgage loans above the conforming and FHA loan limits are not eligible for the federal [...]

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