Fannie Mae (FNM), the country's largest source for home mortgage funding has made that estimate while Consolidated Credit Counseling Services estimates that up to 10 percent of those seeking counseling are hurting from adjustable-rate mortgages or home equity loans.
This Newsweek.com article states that of the $ 9 trillion in mortgage debt $425 billion is in adjustable-rate mortgages with another $600 billion in home equity lines of credit and second-lien mortgage loans.
Behind the statistics lie the shattered dreams. The real estate boom enabled families who never thought they'd be able to own a home to buy into the American ideal, thanks to creative mortgage structures and low rates. In 2003, homeowners took out an estimated $332 billion in new sub-prime mortgages—the higher interest loans offered to those who don't qualify for prime rate loans. By last year, that amount had more than doubled to $665 billion, according to Freddie Mac. Now, rising rates mean those least able to afford it are the most likely to be affected.
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