Rates way up!
One of the biggest risks ARM borrowers face when their loan adjusts is payment shock when the monthly mortgage payment rises substantially because of the rate adjustment. This can cause hardship on the borrower's part if they can't afford to make the new payment.
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Most ARMs being written today are 7 year ARMs, a few 5 year. It will be a long time before we see any ARM fallout.
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Unfortunately all rental properties when you make investments are arm loans, once you buy properties and make the owner an LLC, the liability to have rentals in your own name is insane
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