While we continue to fair better than the rest of the country, with many ARMs (adjustable rate mortgages) getting ready to re-set out of their introductory rates, this trend may continue.
This is why it’s critical that all home owners with adjustable rate or balloon mortgages contact their Mortgage Professional as soon as two years before their mortgage rate is set to adjust. This (ARMs adjusting) is not limited to those with subprime mortgages.
The more time you allow yourself to get your credit in check and possibly avoid having home values depreciate, the better off you’ll be should you need to refinance. Sadly, I’ve been contacted by a couple of home owners in other parts of the country who are not only facing higher payments from their adjusted ARM payments, mortgage balances that exceed their home values and plumeting credit scores. FHA Secure won’t help them since they’re beyond the 97% loan to value. It’s too late.
Please don’t put off contacting a Mortgage Professional. Take action before you’re in trouble.
Here’s a great article by Sandy Kaduce: Avoid Losing Your Home.