Tim Kearns, owner of Fairfield-based First Priority Financial, said he's seen more adjustable rate mortgages written in the past few years than were necessary.He
believes that while the relief plan will help some property owners, it may hurt the housing market overall.
"The backlash is that lenders and investors alike will likely be much more skittish about investing in adjustable rate loans in the future," he
In Solano County, the average loan Kearns' company brokers is around $310,000, he
said, with the average mortgage payment between $1,700 and $1,800 per month.The national average is about $1,200 a month.
The average client doesn't go into foreclosure because they don't understand their loan, according to Kearns
."Most people had an assumption that the future was going to be better.They knew the loan would get a lot more pricey.But they thought that would be OK, because hey, real estate always goes up in value.And that's the misnomer they were told." Kearns
, who teaches realty classes, believes mortgage banks should disclose more information about the nature of the loans to the borrowers.
"When they issue a loan to a consumer, they don't have to tell them what they make on the loan," Kearns