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To say the least it was a wake-up call to all of us. ARM An ARM program that is fixed for the first 2 or 3 years, then shifts into a 6 month adjustable rate mortgage. I think they may owe at least the original $250k at least, but still have considerable equity. Neighborhood Housing Services of New York City says it has beenfloodedwith calls from borrowers who took out ARMs two years ago and whose rates are now resetting for the first time.
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