Risky ARM Mortgages Come Due

Thousands of people used non-traditional mortgages in the last two years to purchase a home, and now are facing higher mortgage payments as these ARMs begin to have higher interest rates after the initial "teaser" rate period expires.

Economist say that nearly 40 percent of all home loans in metro Phoenix are adjustable. Nationally, the figure is about 30 percent.

"Record numbers of people lured by low initial teaser rates have taken out adjustable rate mortgages that are putting them in vulnerable positions as interest rates rise," said Jay Luber, a vice president with First Horizon Home Loans in Phoenix.

The number of people making late payments on ARMs in Arizona climbed during the second half of 2005. And foreclosures in metro Phoenix are already beginning to climb. More...

I personally can not believe how many people lose their home to forclosure. There is absolutely no need to in my opinion... most have earned enough equity to just sell the home once they see trouble on the horizon.

Read more on mortgages here in an article titled FHA Is Making A Comeback.