The More You Read, The More You Learn

Why learning is important..."It is critical that a company create the kind of environment in which people really believe they can learn, grow, and prosper. The focus has to be on developing people."


Wednesday, October 24, 2007

Is Your Mortgage Resetting?

About $50 billion in adjustable mortgages are resetting this month. The interest rates will be going up for many borrowers.

What can borrowers do at this time? Most will have to find a way to pay the higher expenses, but are they prepared for this? Many are not even aware of how much their new payment will be.

If you have an ARM mortgage, you should be concerned and become aware of your options. Mortgages that will default will be at an all time high. A loan modification can be helpful and an option before going into default. Seek the help of your lender. Inquire about refinancing to a fixed rate.

Should the blame be put on poor underwriting standards? The subprime crisis came to a head in July and August of this year. By March 2008, there could be $100 billion in resetting loans.

I have read that servicers might give ARM borrowers an extra three to five years of payments at low rates, giving them the help they need until home prices rebound. Unpaid interest could then be rolled back into principals and loans refinanced.

Become aware of your mortgage terms, learn how your mortgage resets and become aware of all your options. Get yourself prepared, so you are not caught in a situation that you will default.

No comments: