Wrong.
All Adjustable Rate Mortgages likely are deceptive and should be illegal.
But the buyers are told that the adjustable rate will be based on the economy, and they were lied to.
When the economy tanked, the adjustable mortgage rates close to doubled.
No one could afford that.
It was outright fraud and theft by the banks.
Nor did the banks have to foreclose.
The rate did not have to increase.
There was no new expense to the banks.
They could have kept things at the same profitable rates, without foreclosing.
But they wanted the defaults.
Then they got all the previous payments for free, and the buyer lost everything, including down payment.
But I would NEVER take an ARM.
They are foolish and deceptive.
All Adjustable Rate Mortgages likely are deceptive and should be illegal.
What's wrong, did the wording in the contract confuse you?
Was the addition too difficult?
But the buyers are told that the adjustable rate will be based on the economy,
Show me. Post a contract that mentioned the economy, not an index rate.
When the economy tanked, the adjustable mortgage rates close to doubled.
When did the economy tank? What was the original rate? The new rate?
Without specifics, your whining is unconvincing.
It was outright fraud and theft by the banks.
Nor did the banks have to foreclose.
You think the banks wanted to foreclose between 2007-2009?
You think the banks made money on foreclosures between 2007-2009?
The rate did not have to increase.
There was no new expense to the banks.
If the banks financed the mortgage with short-term money (deposits),
why don't they have a new expense when rates increase?
But beyond that, you got a lower rate with the adjustable. If you wanted
a fixed rate, get a fixed rate mortgage. Or understand the risk you took
and stop whining.
But I would NEVER take an ARM.
They are foolish and deceptive.
So why are you whining about the people who did?
If they were too stupid to understand what they signed, they should be renters.
Of course they still need to read their lease, eh?
