Chapter
The Danger of Adjustable Rate Mortgages
04:52 - 12:08 (07:16)
The rise of adjustable rate mortgages (ARMs) contributed significantly to the housing market collapse of 2008. ARMs were marketed as a way for homebuyers to afford a home, but often left them in a worse financial position due to lack of understanding of how they worked and the assumption that home prices would continue to rise.
Clips
In this podcast, the speaker discusses the risky nature of adjustable rate mortgages (ARMs) and how they contributed to the 2008 financial crisis.
04:52 - 10:29 (05:37)
Summary
In this podcast, the speaker discusses the risky nature of adjustable rate mortgages (ARMs) and how they contributed to the 2008 financial crisis. Many people were unaware of the potential for their mortgage payments to increase beyond what they could afford, leading to defaults and mass foreclosures.
ChapterThe Danger of Adjustable Rate Mortgages
EpisodeEverything You Need To Know About The Housing Market w/ Jaspreet Singh EP 1313
PodcastThe School of Greatness
The interplay between interest rates, the economy, and the housing market is complex.
10:29 - 12:08 (01:38)
Summary
The interplay between interest rates, the economy, and the housing market is complex. Interest rates don't have an immediate effect on 30-year fixed-rate mortgages unless the economy goes down, and individuals lose their job.