I am considering an adjust rate mortgage to lower my payment over the next year. I will be retiring and selling my house next spring. I would like to lower my mortgage payment and invest the difference over the next year.
Not a good idea dude! It means they can change the rate on you (if economy worsens, you miss payment or they feel like it).
People are falling prey to this and end up with foreclosures
what are the terms and average adjustable rate mortgage?
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Not a good idea dude! It means they can change the rate on you (if economy worsens, you miss payment or they feel like it).
People are falling prey to this and end up with foreclosures
References :
NO NO NO. Don’t get sucked into a staright adj. If you want something to keep the payments down for the next year do a intrest only loan that way your loan will not go higher on you. I can go over all this with you. You might not want to do anything at all but feel free to call me. I am in Orange County and work for Chase Bank. http://www.ocrate.com let me know.
References :
There are many options available to you. Some may be good, some will not be. You have the option of 1,3,5,7 & 10 year adjustables. This means your rate is fixed for 1,3 etc years and then the rate will adjust. You then have the option of interest only payments or amortized payments. Lastly in the ARM world is the option arm. This allows a minimum payment from a starting point of 1% which is a drastically lower payment than interest only; however the lower payment is not magic. If your interest only payment is say $2000 and your minimum payment is $1000 then making the lower payment means that the unpaid interest gets readded to your loan balance. This is called negative amortization.
If you are interested in looking at your options drop me a line and we can discuss what is available. I am a Licensed Loan Officer in Orange County and work with over 100 banks and lenders in California.
Kevin
866-562-6838 x 106
Kruorock@firstratelending.com
References :
Loan Officer, Mortgage Specialist