Preventing ARM Adjustment ShockBy Karen Lawson
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You've enjoyed low mortgage payments for the past couple of years, and your lender has just notified you that your interest rate is adjusting. Your payment could potentially increase by as much as 35%. Ouch! What should you do? Here are some tips for understanding your mortgage terms, and how to approach mortgage lenders for assistance.
Mortgage Payments and Your FinancesYour home is a tangible asset. As you build equity, you may be able to borrow funds for home improvement projects, starting a business or other purposes. When you bought your home, you may not have paid close attention to your new home loan terms. Now you face significant adjustments in your interest rate and your monthly payments. Your lender and /or community service agencies may provide help if you have trouble understanding your mortgage documents. If you find that your payments may increase to more than you can pay, you can ask your lender for assistance. Here are some options:
About the Author
Karen Lawson is a freelance writer with extensive experience in mortgage banking. She holds BA and MA degrees in English from the University of Nevada, Reno.
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