Question : What happens when your home loan switches to the adjustable rate?
My home loan goes into an adjustable rate in June of next year. I am wondering what to expect. I currently have a so-so rate... with interest rates dropping or staying the same, what will my adjustable rate do if the market stays like it is now?
- asked by Jeanette
All Answers:
Answer #1
your monthly payment goes up next June, startingJanuary of 2008 I would start looking for a fixedrate. You shouldhave (or establishing) anexcellent payment history. Don't belate anddon't pay less.
- answered by Ask M
Answer #2
you basically fall into a yo-yo effect. An ARMrates can change up and down at any point in timeat times resulting in high interest fees. As forwhat happens now, you mayluck out and have itremain the same and possibly lower but, if themarket changes...basically taking a chance....
- answered by Tina
Answer #3
Almost certainly, your loan rate will switch up toa higher rate. Look at your loan paperwork. Theyprobably use some financial standard like PrimeRate +/- some percentage points.Then go online andfind out what that standard rate is and do themath and you'll get an approximation of what toexpect.
- answered by Laissez-Faire Guy
Answer #4
Disaster for many. You have what we had. I adviseyou to refinance with Dieteck, the GM ownedcompany. Consolidate your debts and get the newmoney.The adjustable loans are loosing homes tothe lender and the government is stepping in tostop the losses.Had we not refinanced when we did,we would have lost ours. You may see the hugeincrease in payments if you don't refi.........
- answered by Dedicated to the truth!
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