Is your mortgage about to inflict financial pain on your family? It might be, if you have an adjustable rate mortgage (ARM) that is scheduled to reset this year.
Depending on the type of ARM you have, you could see your house payment increase by 30, 50, even 100 percent in the next few months. This is because the Federal Reserve has raised interest rates seventeen times since 2004, and ARMs are tied to these rates. In addition, many home buyers entered the market with low introductory “teaser†rates that were scheduled to go up regardless of what interest rates did.
Most ARMs are known as “hybrid†ARMs because they combine features of fixed rate mortgages and adjustable rate mortgages. With hybrid ARMs, payments are fixed for a predetermine View the rest of this article
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