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Should borrowers with adjustable rate mortgages refinance while rates are low?Get today's rates from 4 lenders.
It's a bumpy ride right now for adjustable-rate mortgages who appear to be putting financial strain on some unsuspecting homeowners.
According to recent reports from The Mortgage Bankers Association - nearly 43 million loans rose in the third quarter of 2006. The worst fell on borrowers who have subprim mortgages - loans that have higher rates for borrowers who have lower credit scores. Thos who weathered the storm where borrowers who had subprime loans.
Now that mortgage rates have fallen to new lowes, some are considering refinancing an adjustable-rate mortgage (ARM).
Many variables should be considered before you go in this direction. The big question to ask is whether you'll save more by reducing mortgage payments
Mortgage PIG's database of lenders offerfree refinance advice.than you'll spend by refinancing. This calculation is based on several elements, size of the cut in the rate, length of time you've paid on your mortgage, and how small or large your closing costs will be.
Don't forget another cost you need to remember is any penalty levied by your current mortgage company called prepayment penalties. This could cause you to gain more then you save by converting your mortgage to a lower rate.
Before you race out the door and go to the first lender you see, in an effort to avoid rising mortgage rates, slow down and do some research. The internet offers many tools to help you, including articles, information, and calculators. Also, many free services from leading lenders include custom rate quotes and free counseling. If you are interested in comparing loan rates and discussing your finances, please visit MortgagePIG.com