Those Adjustable Loans Aren’t in the Clear Yet

On August 23, 2012, in Uncategorized, by David Monsour

The liar no-doc loans of the past aren’t in the clear yet.  Many people have managed to refinance out of these into more comfortable loans.  However, many people have not.  The reason being is that those loans are tried to prime rates which, at the moment, are extremely low.  The people with these loans are living the good life as rates float along the bottom.  The pessimist in me thinks that these rates will not last forever.  The government has held rates low for quite a while and will probably keep them down for a while yet.  The looming election could dictate some change in rates and fiscal policy which could potentially push rates up and put many home owners back on the foreclosure track.

If you haven’t refinanced and you have an adjustable rate mortgage left over from the early 2000’s it might be time to look into a refinance.   You probably have another 12-18 months to complete the process but with rates under 4% for 22 straight weeks it’s safe to say the time is now.

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