By Jim Grayson
Over the last few years, thousands and thousands of homeowners
have financed or refinanced their homes with ARM's, Adjustable
ARM's are mortgages that are tied in to lower interest rates
the beginning so that many homeowners can afford their monthly
payments. As long as interest rates stay even or go lower, the
home owner is fine. The danger comes when interest rates start
to rise. Monthly payments can go up hundreds of dollars when
the interest rate/payment terms come into effect.
That danger is now. Interest rates have been going up as The
Federal Reserve has raised rates for the 15th time in the last
two years. And, it doesn't look like rates are going to stop
going higher anytime soon. As these mortgages reset to higher
rates and payments, many of these ARM homeowners are going to
be in a financial bind. Many may even lose their homes.
According to the Mortgage Bankers Association at the end of
2005, some states such as Michigan, Missouri, Tennessee and
Alabama have as many as 20% of the ARM homeowners behind by
thirty days or more. Foreclosure proceedings usually start
a homeowner is ninety days late. Hopefully, these homeowners
will get refinanced before it is too late.
If you have an ARM, you should look at your finances to be
you will remain solvent in these upcoming times. How high can
your monthly house payment go? Will you be able to afford it?
Talk to a financial adviser and determine if refinancing to a
fixed rate is the best way for you to go. I believe locking in
a fixed rate is the safest decision you could make at this
moment in time.
There are many mortgage companies that will look to provide
refinancing options for you. Unfortunately, many of these
companies may be much more stringent in regards to your credit
worthiness. That is, it may be much harder to borrow that
now than when you initially purchased your first or second
mortgage. You will never know unless you try … and the clock
About The Author: The author derives a financial income in
field. If you have found this article useful, then try
on his specialist resource site,
www.homemortgagefacts.info . For other more general
information on this topic and others, try this site