Affording Adjustable Mortgage Rates

by Anonymous

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 the mortgage rate resets. I wonder whether I can afford an ARM when the initial interest rate increases dramatically.

I've heard stories of homeowners who cannot make the monthly payments on their mortgage. What are my options if the interest rate increases? What are my options if I cannot afford to make the payment once the interest rate resets?

Where can I learn more about these issues?

Affording Adjustable Mortgage Rates

Dear Friend, Adjustable mortgage rates are like a tool. Use them for the short term and they can save money. But just as no one expects a good outcome from using a lawn mower to prune prize winning rose bushes, adjustable rate mortgage loans could be a poor tool for the long term.

Who shouldn't consider adjustable rates? One example is a retiree on fixed income who needs the stability of a best fixed rate mortgage.

Who might be an appropriate candidate for an ARM? For someone anticipating a large sum of money or expecting additional income within their family, variable rates can be a good tool.

Anyone with adjustable rates who can't make their monthly payments needs help to turn this predicament around. Eight Strategies To Stop Mortgage Foreclosure is the guide every homeowner needs.

Adjustable Mortgage Rates Good Or Bad will assist you in deciding if a variable rate program is suited to your lifestyle.

Plan well. Become a savvy mortgage shopper by visiting often.



P.S. Go to my Best Mortgage Rate Blog, an entertaining source of mortgage information. Subscribe now to the RSS feed.

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You can also ask Kate about your mortgage at Answers to Adjustable Mortgage Rates.

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