Reading the Fine Print When RefinancingBy Karen Lawson
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You go to the zoo, and admire exotic and dangerous animals. Would you bring one of them home? Probably not. In recent years, mortgage lenders have had to develop non-standard, or "exotic", mortgage products that enable homebuyers to buy homes selling for very high prices. Buying a home, especially a first home, is very exciting. It's easy to accept a mortgage that enables you to realize your dream, but exotic mortgages may be costly in the long run.
Exotic Mortgage Loans: Paying the Price as Interest Rates RiseARM mortgages have become somewhat standard in the mortgage marketplace. Current interest rates are rising, and adjustable rate mortgages are adjusting upward. Homeowners can experience financial problems due to payment increases. It's likely that some borrowers had no idea of how their payments could change when they signed their mortgage papers. If you're refinancing, here are some things to look out for:
About the Author
Karen Lawson is a freelance writer with more than fifteen years of experience in mortgage banking. She holds a Master's Degree in English from the University of Nevada, Reno.
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