In '05, 82% In SF Bay Area Bought With ARMs
In a story I already posted on, this bit of info got past me. "With Bay Area home prices rising steeply over the past two years, most buyers have opted for adjustable-rate mortgages, often with the option of "interest-only" payments."
"In the first two months of 2005, 82 percent of people who bought homes in the nine Bay Area counties and Santa Cruz County got adjustable-rate mortgages."
The potential for payments to increase is pointed out. "A buyer with a $450,000 loan at 3.47 percent had a monthly payment of $2,013.17. This year, with the increase capped at a typical two percentage points, the rate would be 5.47 percent, and the monthly payment would be $2,531.76."
"And you're not done," McBride said, "because this time next year it's likely to adjust again."