Be aware of the details in your mortgage. You may have an adjustable mortgage when you thought you had a fixed mortgage. Theres a difference between a 30 year fix and a 30 year amortized loan...
June 29, 2007 (Press Release) --
Did you know that more than 33% of homeowners that have a mortgage do not understand what type of loan they have? There are many types of mortgages available to homeowners today from the traditional 30 year fixed loan to an exotic option ARM (adjustable rate mortgage) loan. Do you remember know what kind of loan you’re in?
RISING MORTGAGE PAYMENTS
The big issue facing many homeowners today is the fact that their ARM is adjusting and many homeowners are taken by surprise because they weren’t prepared. Because of the details in their ARM their new adjustable rate may result in an increased monthly payment of up to 50% of the current payment. Adjustments may occur periodically depending on the index, margin and caps associated with the home loan.
Many homeowners wrongfully assume that they have a 30 year fixed loan and to their surprise lately discover that they have a 30 year amortized ARM instead. If you’re not sure what you have, grab that stack of loan docs that you signed and look for a document titled ADJUSTABLE RATE RIDER; if you find it then that means you have an adjustable loan. Find the INTEREST RATE AND MONTHLY PAYMENT CHANGES section as this will spell out the details in the following subsections: Change Date; The index; Calculation of Changes; Limits on Interest Rate Changes.
BE PROACTIVE – TAKE ACTION
If you have an ARM start your research now to find out what’s available to you, how the housing market changes rates and qualifications, and how they might affect you. As homeowners, we need to take ownership and control in our financial lives as mortgage is typically one of the largest investments we have made. Educate yourself and surround yourself with a team of knowledgeable experts that work in cohesiveness for your financial success.
For help in retrieving a copy of your Adjustable Rate Rider, please contact my office and we would be more than happy to assist you.
Robert T. Belo is affiliated with DAPERO MOGOBE, Inc. a Debt and Asset Management Firm
Licensed by the Department of Real Estate Broker License #01473802.
For more information please call 888.432.7376
or email Robert@daperomogobe.com
RISING MORTGAGE PAYMENTS
The big issue facing many homeowners today is the fact that their ARM is adjusting and many homeowners are taken by surprise because they weren’t prepared. Because of the details in their ARM their new adjustable rate may result in an increased monthly payment of up to 50% of the current payment. Adjustments may occur periodically depending on the index, margin and caps associated with the home loan.
Many homeowners wrongfully assume that they have a 30 year fixed loan and to their surprise lately discover that they have a 30 year amortized ARM instead. If you’re not sure what you have, grab that stack of loan docs that you signed and look for a document titled ADJUSTABLE RATE RIDER; if you find it then that means you have an adjustable loan. Find the INTEREST RATE AND MONTHLY PAYMENT CHANGES section as this will spell out the details in the following subsections: Change Date; The index; Calculation of Changes; Limits on Interest Rate Changes.
BE PROACTIVE – TAKE ACTION
If you have an ARM start your research now to find out what’s available to you, how the housing market changes rates and qualifications, and how they might affect you. As homeowners, we need to take ownership and control in our financial lives as mortgage is typically one of the largest investments we have made. Educate yourself and surround yourself with a team of knowledgeable experts that work in cohesiveness for your financial success.
For help in retrieving a copy of your Adjustable Rate Rider, please contact my office and we would be more than happy to assist you.
Robert T. Belo is affiliated with DAPERO MOGOBE, Inc. a Debt and Asset Management Firm
Licensed by the Department of Real Estate Broker License #01473802.
For more information please call 888.432.7376
or email Robert@daperomogobe.com
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