Mortgage Payments Still Low After Re-Refinancing

The current mortgage market is causing a lot of people to cringe, especially those that took out an exotic mortgage a few years back. As the initial fixed rate period comes to a close, homeowners are starting to shy away from inflated fixed rate mortgages, or even selling their home to escape ballooning payments. The idea is to re-refinance with another adjustable rate mortgage.

It may not sound like it makes sense, but if an initial adjustable mortgage had a three-year fixed period that is up this year, with the option to pay interest only, the best way for a homeowner to stay close to that same payment is with another adjustable rate mortgage. Many products are on the market now, some with flexible payment options. Initial fixed periods can range from one to ten years, and can be much lower than a conventional mortgage. As long as a homeowner is educated about the mortgage they receive, re-refinancing could be the next mortgage wave.