An Adjustable-Rate Mortgage (ARM) is a type of loan whose prevailing interest rate is tied to an economic index (like one-year Treasury Bills), which fluctuates with the market. The three most popular types of ARMs are one-year ARMs, which adjust every year, three-year ARMs, which adjust every three years, and five-year ARMs, which adjust every five years. When the loan adjusts, the lender tacks a margin onto the economic index rate to come up with your loan’s new rate. ARMs are considered riskier than fixed-rate mortgages, but their starting interest rates are generally lower than a longer-term rate. Learn more about ARMs and other mortgage options here.
Numbers of Foreclosures and Delinquent Loans Increase
Home owners missed payments on almost 6.5 percent of home loans on one to four unit residential properties during the first quarter of 2008. Almost 2....
Increase Cash Flow To Pay Down Mortgage
A teacher is trying to sell her house, but she's worried about the slow market and her adjustable rate mortgage resetting to a monthly payment that she can't afford on her income. She wants to know how to pay down her mortgage, or what other options she has. To pay down your mortgage you can get another job or get a tenant to live with you. The only way to increase cash flow is to increase your income or lower expenses.
Mortgage Bankers Announce Latest Mortgage Stats
The number of mortgage loan applications rose 3 percent since last week, announced the Mortgage Bankers Association this morning. Word must be getting...
Refinance Mortgage For Right Reasons Like Preventing Foreclosure
You may be wondering whether to refinance your mortgage now. Make sure to refinance your mortgage for the right reasons. Lowering taxes may not be a good reason to refinance. Preventing foreclosure may be worthwhile.
Take Quick Action To Avoid Mortgage Crisis
A mortgage crisis hotline may be the best bet for this homeowner to avoid foreclosure or a short sale. An adjustable rate mortgage (ARM) and a student loan has put her in a financial crisis, and taking the right steps could help her keep her home. The new FHA secure plan may be a solution to avoid further financial crisis.
Short Sale Real Estate Investor’s Only Option
A real estate short sale may be the only option for this new real estate investor. Many new real estate investors did not anticipate the down turn in the market and now owe more on a property than it is worth and are being forced to negotiate a short sale. If the mortgage lender accepts the short sale, the real estate investor may still be required to pay out of pocket for other expenses.
New Home Sales Fall from 2006, Mortgage Rates Fall Too
Sales of new homes in the U.S. jumped 4.8 percent from August but fell more than 23 percent from September 2006, the federal government reported today...
Homeowners, Housing Market Face Rising Foreclosures
Homeowners everywhere are feeling the pain of the housing market and rise of foreclosures. According to the latest numbers from the Mortgage Bankers Association of America (MBA), the number of homeowners starting the foreclosure process hit a record high this spring. More homeowners cannot make their mortgage payments, and as the housing market continues its downward spiral, homeowners are forced to start the foreclosure process.
Signs Of A Turnaround?
Indymac Bank announced this afternoon that it is returning to the jumbo loan market. In other words, if you're in the market for a mortgage in excess ...
Refinance ARM Mortgage Just Before Interest Rate Adjusts
When you have an adjustable rate mortgage (ARM) loan, the loan starts out with a fixed rate and later adjusts to a variable rate. To avoid a rise in interest rates, you may want to time the refinancing of your ARM mortgage so that it occurs as your fixed rate period ends. Watch interest rates to figure out whether it's worth it to refinance your ARM mortgage and when's the right time to refinance.