What happens when your home loan switches to the adjustable rate?
Home Mortgage
Jeanette asked:
My home loan goes into an adjustable rate in June of next year. I am wondering what to expect. I currently have a so-so rate… with interest rates dropping or staying the same, what will my adjustable rate do if the market stays like it is now?
Kathleen
My home loan goes into an adjustable rate in June of next year. I am wondering what to expect. I currently have a so-so rate… with interest rates dropping or staying the same, what will my adjustable rate do if the market stays like it is now?
Kathleen
March 14th, 2009 at 8:44 pm
Alvin
your monthly payment goes up next June, starting January of 2008 I would start looking for a fixed rate. You should
have (or establishing) an excellent payment history. Don’t be
late and don’t pay less.
March 14th, 2009 at 10:52 pm
Ralph
you basically fall into a yo-yo effect. An ARM rates can change up and down at any point in time at times resulting in high interest fees. As for what happens now, you mayluck out and have it remain the same and possibly lower but, if the market changes…basically taking a chance….
March 16th, 2009 at 6:05 am
Robert
Almost certainly, your loan rate will switch up to a higher rate. Look at your loan paperwork. They probably use some financial standard like Prime Rate +/- some percentage points.
Then go online and find out what that standard rate is and do the math and you’ll get an approximation of what to expect.
March 18th, 2009 at 11:02 am
Sean
Disaster for many. You have what we had. I advise you to refinance with Dieteck, the GM owned company.
Consolidate your debts and get the new money.
The adjustable loans are loosing homes to the lender and the government is stepping in to stop the losses.
Had we not refinanced when we did, we would have lost ours. You may see the huge increase in payments if you don’t refi………