ARM option mortgages in Ireland?
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Dave Vanian
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Smiley - Could you summarise the benefits in simple English? The Wikipedia link doesn't enlighten me very much.
Brendan Burgess
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Is an Adjustable Rate Mortgage not the American word for what we call a tracker?
Irish trackers track either the ECB rate or the Euribor rate.
Brendan
Irish trackers track either the ECB rate or the Euribor rate.
Brendan
dave...as far as i understand, in plain english..you take out a mortgage say for 20 years, but you have the option for the first e.g five years to pay very little of your mortgage, but when day 1 of year 6 arrives, suddenly your mortgage payment jumps very substantially.
so for arguments sake...you are quite comfortable paying your $900 per month for the first five years and then suddenly your payments go up to $3500 per month...
large amounts of these seem to have been sold in the usa, perhaps a bit too easily, and a good proportion are heading for that year 6 higher payment in the next year or two.
We've had subprime, but this could be act 2 in the us financial crisis.
My main point for bringing up this topic is that i hope these sort of mortgages were not available in ireland, and that 100% mortgages (excl tiny subprime market here) were probably the nearest thing to these sort of loans (yet still far apart).
so for arguments sake...you are quite comfortable paying your $900 per month for the first five years and then suddenly your payments go up to $3500 per month...
large amounts of these seem to have been sold in the usa, perhaps a bit too easily, and a good proportion are heading for that year 6 higher payment in the next year or two.
We've had subprime, but this could be act 2 in the us financial crisis.
My main point for bringing up this topic is that i hope these sort of mortgages were not available in ireland, and that 100% mortgages (excl tiny subprime market here) were probably the nearest thing to these sort of loans (yet still far apart).
LDFerguson
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It sounds a bit like going interest-only on your mortgage for the first five years, then reverting to annuity. Or perhaps the "low-start" options that some lenders have offered.
Based purely on anecdotal evidence, I don't think Ireland would have a huge exposure to either.
Based purely on anecdotal evidence, I don't think Ireland would have a huge exposure to either.
They sound quite similar to those type of loans you mention Liam.
As regards Ireland, thats good to hear liam, thanks. They seem to have quite a lot of exposure in the states. Probably will be act II of this fiasco.
Could be a bumpy ride, but their economy will pull through.
As regards Ireland, thats good to hear liam, thanks. They seem to have quite a lot of exposure in the states. Probably will be act II of this fiasco.
Could be a bumpy ride, but their economy will pull through.