Wave of Mortgage Resets to hit 2009 - 2012

March 10th, 2009 • Related • Filed Under
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Posted by Tom M

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One of the best blogs out there covering the current mortgage market is Dr. Housing Bubble and today they issued a post that included the chart below:

This is a Credit Suisse chart that shows the the oncoming mortgage resets for ARMs, Option ARMs, Subprime Loans, Alt-A Loans, Prime Mortgages and Agency Mortgages. And the outlook is grim—There is a significant amount of mortgage resets that are scheduled to occur in 2009, 2010, 2011 and 2012.

Currently in 2009 Mortgage rates are at all-time lows—but if your house is underwater, you can’t refinance and will face a mortgage reset. Looking into the future, many people are seeing much higher rates in the outer years—So when the 2010 - 2012 resets occur, home-owners’ monthly mortgage payments could take a quantum leap up.

As I’ve blogged about before, this housing bubble took years to climb in value—and it will likely take years to come to a bottom.

There Are 2 Responses So Far. »

  1. Comment by Nick L on 13 April 2009:

    Good Post

    I would like to hear your opinions on these upcoming mortgage resets on my article where I have the bullish cases and bearish:

    http://www.nakedhedgefund.com/finance/next-crash-does-the-infamous-mortgage-reset-chart-matter/

    Thanks in Advance

  2. Comment by Steve in Indiana on 6 August 2009:

    In light of oncoming mortgage \resets\ creeping closer to our National
    Banking system it is easy to understand the erie \hush\ that has swept the National News Media and the colossal impact it will make to a already crippled economy. The loan institutions who hold these toxic mortgages will begin to fold like dominos in the immediate future. This wave of NEW foreclosures is gonna \rock\ the entire U.S.
    and International community to a level that could cause the collapse
    of the U.S. Banking system because our \TREASURY\ is OUT of money !
    It will also \tip\ our economy into a full blown DEPRESSION due to the freezing of the Nations credit markets. My advise is to cash out of securities and seek shelter in foreign markets and currencies. Plus,don’t forget to pick up a years supply of food and lots of ammunition…we could be in for a VERY rough ride !

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