Fear Mongers and Adjustable Rate Mortgages
Author: Evan Vanderwey
Website: http://www.lansingmimortgage.com/fear-mongers-and-adjustable…
This post is excellent advice if you are in an Adjustable Rate Mortgage.
I was recently contacted again by a gentleman who is in an Adjustable Rate Mortgage – he is getting concerned about the situation and what could happen if inflation rises and/or rates rise.
There seems to be a lot of fear about this in many households. If you have an ARM type loan and your current loan balance is higher than your home is worth, you may not qualify for any of the wealth redistribution programs out there – so what can you do?
This phone call was like many that I have – I wanted to share it in some detail:
This person has a mortgage balance of around $150,000. The homes on his street are selling at or around $115,000. His interest rate is currently around 3%. He does not qualify for ANY of the programs and his current lender is not willing to modify his loan. His mortgage has a “capped rate” of 11.95% – that’s as high as his rate could ever go.
Most importantly – he is…
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