"My adjustable rate mortgage is adjusting up way too much!"
Thats a complaint Loan Officers are hearing a lot lately. Youre not alone. Different estimates are that between 500 billion and 1 trillion dollars of adjustable rate mortgages (ARMs) are set to adjust by the end of next year.
Some good news - your ARM, as opposed to a fixed rate mortgage, has almost definitely saved you thousands of dollars in interest over the last few years. Congratulations!For some people, interest rates are going up 3-4% once their adjustable rate mortgage adjusts. This is resulting in a payment increase of anywhere between $100 and $500 a month, possibly more depending on the size of your loan. A good, experienced loan officer can help you sort through your options.
If your mortgage rate is adjusting too much then it may be time to look into refinancing your mortgage loan. You can explore the options of refinancing your mortgage into a fixed rate mortgage to stop the loan from ever adjusting over the life of the loan or you can even look into refinancing your mortgage loan into another adjustable rate mortgage. Refinancing your mortgage into another adjustable rate mortgage will provide you with the lowest rate for your situation again and a rate that is fixed for a short term. Either option can provide you with the financing you need and get you away from the home loan that is currently adjusting by leaps and bounds.
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is subject to change without notice. All loans are subject
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