Refinancing From an ARM to Fixed Rate

Low-interest, interest-only loans and so-called “option” adjustable-rate mortgages (ARMs) that allow buyers to make only minimum payments evolved over the last few years to deal with the “sticker shock” buyers felt when they saw how much home prices were ballooning every month.

Now home prices have stabilized, while rising interest rates are causing sticker shock. In fact, the non-partisan Center for Responsible Lending says 97.5% of borrowers who have teaser rates expiring on loans this year could face “payment shocks” of at least 25%, while three-quarters could face increases of 50% or more.

Incomes can’t possibly keep up with these bump-ups, so refinancing at a fixed-rate makes a great deal of sense. Even though mortgage interest rates are higher than they were last year, they’re still pretty low by historic standards.

If this scenario applies to you, get full details on a possible solution here…