Interesting article in the New York Times about owners refinancing with adjustable rate mortgages. $400 billion worth of this type of mortgage is resetting this year in the U.S., next year it’s set to be one trillion dollars worth.
It is the latest twist in the gravity-defying world of the high housing prices and exotic low-rate mortgages: As monthly payments on adjustable-rate mortgages are starting to balloon, many Americans have found a way to put off the day of reckoning.
They are refinancing with new adjustable-rate mortgages that keep monthly payments low â€” for now, that is, though their payments will likely rise even higher in the future.
I guess it will be easier to pay the full load of debt in the future?