Last summer, everyone was getting a refinance. Most of those people couldn’t qualify for a normal, fixed rate loan. Now that interest rates have doubled, so have their payments
But these people are suing the mortgage companies. They say they where deceived into a adjustable rate mortage, when in fact most of these companies advertised the loans as being ARMs. They took a risk, and now are paying. I guess next time an investor loses millions on Wall Street, he’ll sue the company, because it wasn’t clear he might be put in financial peril.