Know Your Mortgage Options
Rather than giving your arm a little twist, having an adjustable-rate mortgage that resets before you’re prepared for it can feel like a punch in the gut, nose, teeth, and groin. This article explores how to avoid being upside down in your mortgage.
When you purchased your home, it may have seemed like an adjustable-rate mortgage, commonly referred to as an ARM, was your saving grace. It was the one option that enabled someone in your modest financial situation to actually become a homeowner. By enabling you to pay small mortgage payments in the early years of home ownership, that ARM also bought you some time to get to where you wanted to be financially so you could sell your home and move up the real estate ladder.
But the market tanked, your home’s value continues to drop, and suddenly, the day of reckoning has arrived — your ARM is coming due. This wasn’t the paradise scenario you had envisioned for yourself. In this flat-line real estate market, the options for wiggling out of your ARM and into a desirable refinance option are limited. But whether your credit is stellar or terrible, experts say you do have options.
Featured on AOL Real Estate. Read the full article.
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