Here's a scary stat if you are a homeowner in San Jose: 62% of the current mortgages there are interest-only 3 or 5 year ARMs which are due to reset in the next 1-3 years. In addition, homes in SJ are currently 64% overvalued according to a report I read this morning. Once people find out they can't afford to refinance due to significantly higher interest rates, I think things out there are going to get real ugly real fast.
Bill,
Maybe you might want to forward this post to someone who would benefit from that knowledge.
Commenting by HaloScan
