MoneyMatters101.com Home
Mortgage Information

Adjustable Rate Mtg.
Build Equity Fast
Changing Interest Rates
Commercial Basic
Commercial Info
Commercial Mtg.
Don't Be Fooled
Fifteen Year Mtg.
Interest Rate Lock In Modification Scams
Mortgage Definitions
Mortgage Fraud
Mortgage Fraud Victims
Mortgage Modification
Mortgage Notes
Mortgage Protection
Mortgage Types
Predatory Lending
Qualifying Tips
Question The Broker
Remortgage Benefits
Reverse Mortgage
Reverse Mortg. Facts
The FBI Investigates
The Mtg. Meltdown
The Mtg. Process
Is It Time To Refinance?
Types of Fraud
Unconventional Mtg.
Where Is The Help


Email Us

Home Loans
PMI Insurance




Adjustable Rate Mortgages: Don't Let 'Em Fool You

An adjustable rate mortgage (ARM) is one of the riskiest and most complicated home loan product ever created. Adjustable rate mortgages enabled cash-strapped homeowners to refinance their mortgages at bargain rates and cut their payments in half. Adjustable rate mortgages allowed new buyers to afford to buy a home in a super-hot market. Some new home owners didn’t even need to produce documentation or a down payment. Buyers who bought property via adjustable rate mortgages will soon have mortgage payments that triple in value.

Adjustable rate mortgages allowed almost anyone to be able to afford to purchase a home. It offered low minimum payments. ARMS extended the housing boom longer than it could have otherwise lasted, especially in the hottest markets.

Adjustable rate mortgages: The Unexpected Trap

Many of the option adjustable rate mortgages taken out in 2004 and 2005 are currently resetting at much higher payment schedules. Since home prices are not increasing as fast as they have in previous years, and in some cases decreasing, borrowers can't count on using equity to help them pay their mortgage payments. Many buyers don’t realize that steep penalties prevent them from refinancing.

Book of the Month

Advertise on MoneyMatters101.com



Accessibility Policy| Terms Of Use| Privacy Policy| Advertise with Us| Contact Us

Use of this web site constitutes acceptance of the Terms of Use.

We are looking to create more mutually beneficial partnerships. If you are interested in partnering with MoneyMatters101.com, send us your proposal.


Link to MoneyMatters101.com