Adjustable Rate Home Mortgage For Seniors

by Leroy
(Tucson, Arizona, USA)

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 online lender is putting me on an ARM home loan.

Leroy continues... I have been reading this morning on the pros and cons on ARMS and now I am scared to death that it the wrong way to go. But I already gave them my credit card to have the appraisal done.

We plan on staying in our home. We are 67 years old and could not afford for our mortgage to increase. Any and all advice is greatly appreciated.

Kate Answers: Adjustable Rate Home Mortgage For Seniors

Dear Leroy, If you are feeling uncertain over the ARM home loan (and rightfully so), pick up the phone right now and cancel the appraisal.

You can always request it again if you change your mind. But here's the thing!

Mortgage interest rates are the lowest since the Eisenhower administration. Therefore, mortgage rates have no direction to go but UP!

Adjustable Rate Home Mortgage For Seniors

Although I am not privy to the exact terms of your proposed ARM, adjustable rate mortgages by nature begin with a low start rate.

With interest rates as low as they are, you should only expect for your monthly house payments to be on the rise, after the fixed period of the ARM is over. That is, if it contains provisions for a fixed period.

Adjustable rate home mortgages require forethought and consideration -- especially for homeowners on a fixed income. Anyone applying for an ARM home loan should ask for the following details at a minimum.

• Start rate
• Annual interest rate caps
• Life time interest rate caps
• Prepayment penalty
• Negative amortization

Get to the bottom of more questions to ask at How To Question Your ARM Home Loan.

In addition, answers to other adjustable rate home mortgage questions can be found at Are adjustable mortgage rates good or bad.

Homeowners with an adjustable rate home mortgage, Seniors on a fixed income especially, will find how to prepare for a future with ARM home loans here: Adjustable Rate Mortgage - How To Avoid Surprises.

Mortgage Tip: Ask for terms of an ARM home loan and get the answers in writing.

Reverse Home Mortgage

Since you are a senior homeowner, have you considered a reverse home mortgage? I've summarized reverse mortgage facts, starting with What Is A Reverse Mortgage for your convenience.

Leroy, one more thing. I'd like to hear back from you. Let me know if this page is helpful to you.

Comment on Adjustable Rate Home Mortgage For Seniors. Or Ask Kate another question here.

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Have You Seen The Most Recent Ask Kate Answers

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Best wishes,

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