Possible mortgage crisis looms for millions ...Middle East

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Possible mortgage crisis looms for millions
Story at a glance About 1.7 million homes were bought in 2019 using adjustable-rate mortgages (ARMs). Many of them were “5/1” loans: five years of a lower fixed interest rate, then a conversion to a market-based rate that’s adjusted once or twice a year. That means a mortgage based on a 2019 interest rate of 3.5% or even lower may balloon to around 6.5%. And that is a significantly higher monthly payment that many people won’t be able to afford. (NewsNation) — It won’t be as bad as 2007, but hundreds of thousands of homeowners will face significantly higher mortgage payments soon, due to their adjustable-rate mortgages. About 1.7 million homes

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