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Well, 1% loans never existed. They were just teaser rates. After a time period (say, 3 years), it would reset to awful ARM rates that the borrower couldn't po
by bronson 9y ago
Well, 1% loans never existed. They were just teaser rates. After a time period (say, 3 years), it would reset to awful ARM rates that the borrower couldn't possibly afford.
The loan agent: "No problem, just refi before then."
- jandrese 9y agoSo people were running away from loans that were about to get way more expensive? Who could have ever seen this coming? IIRC you can't refi if your house value has dropped below your equity in it, meaning those people didn't really have a choice.