October 30th, 2007 5:17 AM by Ron Mastrodonato
ARM BORROWERS DON’T KNOW THE TERMSA national survey of 500 adjustable-rate mortgage borrowers found that 73 percent don’t know how much their monthly mortgage payment will increase the next time the rates go up. The survey, which was conducted for the AFL-CIO labor union, indicates that borrowers are unprepared for the burden of higher mortgage payments. One in five borrowers don’t know their current loan rate, and 25 percent don’t know when their lender will raise the rate. “Predatory lending practices not only involve sticking consumers with bad loans, but also failing to provide homeowners with the basic information they need to survive in this market,” AFL-CIO President John Sweeney said in a statement.
Source: Reuters News, Patrick Rucker (10/14/2007)© Copyright 2007 INFORMATION, INC.
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