Big Wave of Mortgage Resets May Not Be As Bad As Feared by CNBC.com reports that holders of adjustable rate mortgage (ARM) will benefit from the current low interest rate environment. Since mortgage interest rates are pegged to indices such as the interest rate of U.S. Treasuries or the London Interbank Offer Rate (LIBOR), many ARMs will be lowering interest rates versus 2006 to 2008, when the initial rate was set.
This is good news for people with ARMs who are still making their mortgage payments. Their monthly payment may be reduced depending on when they initially borrowed the funds. Thus, the number of mortgage defaults due to ARM resets are expected to be lower than originally predicted.
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This is not financial or mortgage advice. Please consult a professional advisor.
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1 comment:
Short and simple but perfect note on ARM. I hope every citizen make use of this for there mortgage payments. I have also shared this with facebook!
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