Rising Rates Worry Homeowners

Adjustable rate mortgages were the staple of the housing boom in 2003 and 2004. But as many of these “introductory” periods are ending, homeowners are looking at the possibility of not being able to make their mortgage payments. Though homeowners are concerned about the rising rates, most feel that, before the payment becomes an issue, they will be able to refinance out of their current mortgage.

Though rates are still higher than the same time last year, they are at a historically low point that makes now a good time to refinance out of an adjustable rate mortgage. The only problem homeowners may face is a stalling of appreciated value for their homes, which could significantly hinder the process of refinancing and dropping their monthly payment. Though the mortgage market is not optimal for refinancing at this time, the consequences of retaining an adjustable mortgage past the fixed period points towards refinancing.\r\n