Renegotiable Rate Mortgages Offer New Hope for Homebuyers
John Tregoning reports that the Federal Home Loan Bank Board approved Renegotiable Rate Mortgages or RRM, letting rates adjust every three to five years. The ARM can renew after three to five years with automatic renewal and 90 days notice. RRMs may lower borrowing costs if rates drop, though caps allow up to five percent rises in 30 years. The program aims to aid buyers, stabilize savings and loan institutions, and support real estate, with broader implications for financing and deposits. Water-to-air heat pumps are noted as cheaper, more reliable cooling options using surface water or wells.
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