Are adjustable mortgage rates good or bad? It all depends on your circumstances. For example, long term financial goals usually require fixed rates. However short term goals may be served well with loans that adjust. You see, it is all a matter of picking the right tool for the job.
There's rarely been a loan product like an ARM so consistently misused by mortgage professionals and misunderstood by mortgage borrowers.
For decades, lenders oversold low teaser rates to attract consumers. Homeowners and home buyers loved the low initial rates but failed to prepare for payment increases.
Shape your outcome by picking the right mortgage tool! It's easy! Ask Kate for quick, reliable adjustable rate mortgage explanations. You can also view existing questions, comments, and Ask Kate answers.
Then during the previous real estate market with soaring home prices, some lenders helped buyers purchase more than they could afford by offering designer loans which were merely a low downpayment, adjustable rate program with minimal initial payments. Consumers inappropriately failed to plan for rising house payments and decreasing home values ... all part of normal real estate cycles.
Lenders and homeowners used a valuable tool for the wrong job. So to repeat my original question. Are adjustable rate mortgage loans good or bad?
My answer? Adjustable rates are a tool, appropriate under some circumstances and inappropriate under others. It all depends on your goals.
You can break the cycle of mortgage foreclosure and plan for your future by understanding your adjustable rate mortgage paperwork. Then learn how to create your personal long-term solution to adjustable mortgage rates at A Powerful Cure For Subprime Mortgages.
You can also ask Kate which mortgage tool works best for your circumstances. In fact, here is an example of a question I was recently asked: Is there a loan program out there that will just fix our interest rate?
Do you have questions about your adjustable rate mortgage? Every question is a good question!
Read the following questions and comments from other readers as well as my answers. Remember, you can ask a question or add a comment too!
Adjustable Rate Home Mortgage For Seniors
Ask Kate about adjustable rate home mortgage for Seniors: Hi Kate, We are 67 years old and could not afford for our mortgage to increase but a major …
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Ask Kate which is the better way to finance a house, adjustable rate mortgages or fixed rate loans: Hi Kate, I'm unsure which would be best for me, adjustable …
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Adjustable Rate Mortgage Advice
Ask Kate: Adjustable Rate Mortgage Advice - Is there a loan program out there that will just fix our interest rate? Hi Kate, We are currently in an interest …
Underwater 1st and 2nd Mortgage Refinancing
Ask Kate about refinancing your underwater 1st and 2nd mortgages: Sandy's 1st mortgage is a fixed rate. But her 2nd, an adjustable rate mortgage with …
Negative Amortization Loan
Ask Kate about refinancing a negative amortization loan: Hi Kate, I bought my house at the wrong time, obviously. I decided to get a Pay Option Arm, …
10 Year Mortgage
Ask Kate: 10 Year Mortgage With Interest-Only Payments Hi Kate, I am so happy to find your information on this website. I want a TRUE 30/10 Interest …
Avoiding Foreclosure Adjustable Mortgage Rates
Regarding Avoiding Foreclosure Adjustable Mortgage Rates A reader describes her all-too-common situation with adjustable mortgage rates and being "upside …
Adjustable Mortgage Rates Read Before Signing
Adjustable Mortgage Rates - Read Before Signing Should the adjustable mortgage rates rider be witnessed and notarized at closing? What I have, has only …
Do Adjustable Mortgage Rates Ever Go Down
Do Adjustable Mortgage Rates Ever Go Down? Do adjustable mortgage rates ever adjust downward? I have known a lot of people with an ARM, including myself, …
Adjustable Mortgage Rates Advice
Regarding Adjustable Mortgage Rates Advice: Kate, Adjustable mortgage rates had dropped about 2 percentage points from when we purchased our first house. …
Affording Adjustable Mortgage Rates
I like the initial low payment of adjustable mortgage rates. But I have heard a lot in the news about interest rates increasing and payments doubling once …
January 2016: The Mortgage Forgiveness Debt Relief Act Update.
September 2015: Fannie Mae and Freddie Mac Improve Loan Modifications.
Keep on the right path at A Homeowner's Survival Guide to the Intimidating Mortgage Process.
Now go to 30 Year Fixed Rate Mortgage to meet the King Of Mortgages. Or ask Kate a question!
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