Combustible Adjustables: The Troubling Return of the ARM
April 08, 2014
Adjustable rate mortgages are coming back in a big way. The hook is a low monthly payment to start, but you’re playing with fire as the interest rate rises.
We do the math on one of the hottest financial products that baby boomers of a certain age and financial circumstance want: the reverse mortgage.
Borrowers are now required to pay taxes on the forgiven values of their mortgage-related debts, just as banks have begun to write them off.
For those who are fast approaching trouble but have not yet gone past-due on their loans, here's what to do before the debt collectors call you.