Quote:
Originally Posted by milt
Not if it had one of those ridiculously low introductory rates. He could be negative up to the point where it goes adjustable.
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Mine is at 4.375% and tied to LIBOR. I'm almost positive it would go down if it were to adjust today. At worst, it would stay the same.
Negative is not a function of the rate, but rather how much you choose to pay, if it's an Option ARM. Pay less than the actual note rate and you will build negative equity.