The KCM Blog

Option ARMs

Do Subprime Concentrations Lead to Other Foreclosures?

December 7, 2011

We are again honored to have Ken H. Johnson, Ph.D. — Florida International University (FIU) and Editor of the Journal of Housing Research as our guest blogger. To view other research from FIU, visit http://realestate.fiu.edu/. – The KCM Crew Does the presence of a cluster of subprime mortgages in a neighborhood lead to a greater likelihood of [...]

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Can Option ARMs Bear the Weight of Interest Rates?

March 11, 2010

In a previous post, we talked about our concerns regarding the number of families in 2010 that were going to have their Option ARM mortgages resetting or recasting. The term ‘reset’ deals with the change of interest rate. The term ‘recast’ deals with the actual change in the mortgage amount. In either case their mortgage payment could be affected. [...]

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The Long “Option ARMs” of the Loan

January 19, 2010

When the housing market was going strong between 2004 and 2006, many buyers were purchasing houses they were not able to afford with conventional financing. That created a need for less conventional mortgage products known as option ARMs (adjustable rate mortgages). These mortgages allowed a buyer to either pay less of an interest rate during the [...]

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