Adjustable Rate Home Loans

Ask Kate at Get-Your-Best-Mortgage-Rate.comWelcome to question and answer collection. I'm Kate Ford author and publisher of this mortgage website. I will be your guide.

Let's get started. Begin with adjustable rate mortgage questions and answers.

You'll also discover true life experiences with adjustable rate home loans as told by other homeowners.

Lastly are different ways to cruise and search my site. In fact, you can even own my brain!

Ask Kate - Making ARMs Easy Enough for a Baby to Understand

- Sandy's 1st mortgage is a fixed rate. But her 2nd, an adjustable rate mortgage with a looming balloon payment, was a bait and switch at closing when she purchased her home in 2006. Complicating the loan approval process, her type of property is not simple to appraise. Since Sandy is being forced into retirement next year, she asks how to get one affordable house payment.

- At 67 years old, we cannot afford an increase in mortgage payment. But our lender is putting us on an ARM. Reading pros and cons of ARM home loans, I am scared to death.

Ask Kate about your mortgage- I bought my house at the wrong time, obviously. I decided to get a Pay Option Arm, thinking that real estate prices were going to go up. In April 2007, I purchased the REO (Real Estate Owned By The Bank) and paid 5K, and put down K. So my LTV (loan to value ratio) was at 80 percent.

- Hi Kate, I'm unsure which would be best for me, adjustable rate home loan or fixed rate mortgage. The dilemma? I'm retiring in less than a year.

- Can you tell me if an ARM is a good idea or bad idea. My bank has offered me a 4 year adjustable rate home loan.

- Simply put, I do not want any changes in my interest rate during initial 10 year period!

- Is there a loan program out there that will just fix our interest rate?

- Is this still a legal document with only one signature?

Homeowner Experiences of the Adjustable Rate Home Mortgage - The Good, the Bad and... the Ugly

- My adjustable rate mortgage is increasing in April 2009 but my home's appraised value is less than what I owe.


Mortgage Refinancing Boom To Benefit Banks

2012-10-11 10:16:07 by Pelham-Bay

October 11, 2012
Federal stimulus has ignited a boom in mortgage refinancing, benefiting both homeowners and banks. And the good times could continue as the government steps up its support of the broad housing market.
The proof will be in the profits.
On Friday, Wells Fargo and JPMorgan Chase, the top two mortgage lenders in the country, are scheduled to report quarterly earnings. Their results — and the wave of other bank reports that follow — will offer clues as to whether the current mortgage boom is sustainable or set to fizzle.
“We expect mortgage revenue to continue to be elevated in the third quarter and possibly into next year,” said Jason Goldberg, a banking analyst at Barclays

Home Owners' Association Fees

2012-08-28 08:43:04 by FWLittle

Ever see a discount HOA fee? No? Me, either.
What's so special about HOA fees that they don't
undergo competitive marketing elasticity?
We negotiate home prices, we haggle closing costs.
We wait or rush due to interest rates. We swap upgrade possibilities. We switch realtors to
secure a 3% break. We shop mortgage lenders for
an ideal package. But we go-along on HOA fees.
We request the country tax assessor reappraise the property. Merchants offer "no-tax this weekend" specials, but HOA fees remain stagnant. Workers accept temp jobs sans benefits and for fewer hours but HOA fees remain constant

Banks Hiring for Home Loans as U.S. Rebounds

2012-11-20 10:06:05 by SadRenter44

U.S. banks that have been earning record profits from home loans are adding or transferring thousands of staff to catch up with demand for refinancing after shortages blocked homeowners from getting lower rates.
Employment tied to mortgages rose 9 percent this year through September to 285,000, the most since 2008, according to the Bureau of Labor Statistics, as lenders responded to Federal Reserve efforts to push down borrowing costs, President Barack Obama loosened requirements, and housing recovered from a six- year slump. Even as banks added staff, they failed to keep pace, and kept mortgage rates “much higher” than they should be to curb demand, said Vipul Jain, an analyst at Morgan Stanley

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Today's Mortgage Rates: Bank of America Fixed Home Loans and Refinance ..  — Southern Daily Press
We also noticed some upticks regarding BofA's adjustable rate home loans. For instance, the 7/1 ARM bears a higher rate in the form of 2.875%. The 5-year ARM is listed at 3.375%, an increase over the previous 3.250% that it had a day earlier.

Current Mortgage Rates: Conventional Home Loans and Refinance Mortgage ..  — Southern Daily Press
Yesterday this type of fixed rate mortgage was carrying 3.500% in interest. The longer-term, 30-year mortgage package starts at 4.500%. Following the increase in interest rates on adjustable rate home loans on Wednesday, rates are holding firm today.

Related posts:

  • Avatar Jeanette What happens when your home loan switches to the adjustable rate?
    Aug 31, 2007 by Jeanette | Posted in Personal Finance

    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?

    • 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.