Seattle Real Estate Owners, Have You Prepared?
Seattle Real Estate homeowners: Have you secured or improved your financial position on your home? Are you comfortable knowing your rate might adjust? Are you financially stable to continue making your payments?
Currently more then a million Option ARMs will reset to higher interest rates in the next four years. That is a staggering number and you don’t want to be one of them. Most homeowners who have an option arm were making the minimal payment because they anticipated home values would continue to appreciate. Unfortunately that back fired in today’s market.
If you made the minimal payment per month, you increased the principal balance of your mortgage creating a larger deficit. Once you hit 110% or 125% on your loan balance, depending on your loan guidelines you will be forced into a principal and interest payment. That means your payment automatically increases. Once your initial ARM term has matured, your monthly payment is going to increase again!
Prepare now and look into refinancing options!!! You do not want to be faced with a chance of losing your home.
Please follow the weekly kick off to educate yourself on the weekly predictions. Feel free to contact us with any questions you have.
Regards,
The Mortgage Reel