4 Tips For An Adjusting Mortgage Rate
Inman.com has an interesting article on preparing for an adjusting mortgage rate. For some homeowners, their rate might increase up to 40%, making payments very difficult and foreclosure unavoidable.
Tara Nelson offers these 4 tips:
1. Refinance: Only if it the house is a perfect fit for you, and you can handle it for the long-haul.
2. Loan Modification: Ask you lender for creative ways to address your loan. Remember, they will have headaches too if you lose your house.
3. Increase Your Income: Rent rooms, get a second job, etc.
4. Short Sale: This is when your lender agrees to discount a loan balance due to your economic hardship.
The big takeaway is to understand your mortgage and to prepare for any surprises/big changes. Don’t just file your contract somewhere and forget about it.