A reset is when an adjustable rate mortgage goes to the next interest rate level, thus increasing the mortgage payment. Adjustable rate mortgage resets through the end of July 2007 were $197 billion (USD). That is less than what is projected for February and March – and just February and March – of 2008. The first six months of next year will see more than the total for 2007 or $521 billion. The number of foreclosures is due to rise dramatically from the already high current levels, putting more homes into a weak housing environment. So why not refinance instead? Here’s why that may be impossible.
