Mortgage Risk no one is talking about

Here is what no one in the media is talking about--partly because they lack the intelligence with specifics with the hybrid ARM's. Most of the people who took out "prime loans" chose the popular "Pay Option ARM." Here's the catch, the rates on most of them was 1.75% with the remainder being attached to your note--negative amortization anyone--and these ARM's reset at five years.
So, in effect, you have thousands and thou----millions and millions of people who took on these types of loans in the past couple of years who are paying 1.75% and the remainder 4.25% (6-1.75=4.25) being added to the end loan. So if you live in an area with high appreciation then you will fare better than those whose markets have softened because in effect, you will owe more than you paid for the house because of the "negative amortization.

Needless to say, we still have a few years when these rates reset and most lenders have discontinued offering the Pay Option ARM. So, what loan program do these people refinance into because they can't afford their home at a 6% interest rate?
So if you want to be a realtor anytime soon, now is the time to get your license and move to last year's overheated markets because there will be a lot of homes for sale!