The Interest-Only, Adjustable-Rate Mortgage is Very Risky Posted By : Robert Thomson
The Interest-Only, Adjustable-Rate Mortgage is Very Risky Posted By : Robert Thomson
The interest-only, adjustable-rate mortgage (IO ARM) became popular early in the Great Housing Bubble. When fixed-rate mortgage payments were too large for buyers to afford, they turned to IO ARMs as an affordability product. Unfortunately, these mortgage products are not stable because at some point, payments increase, and the borrowers often default.
