LET'S FIX YOUR ARM!

Are you currently in an Adjustable Rate Mortgage? It was a good idea then, but maybe it is not the best option for you now…

Ok, so things change and an Adjustable Rate Mortgage is not for everyone. Now that your ARM is adjusting, Contact Us to see if refinancing you into a fixed rate makes sense - before your ARM adjusts and your payment gets out of control!

Home Lending Solutions always offers a Free Credit Report and Evaluation and a no-obligation consultation with one of our Mortgage Consultants. Click here to get started!

Millions of homeowners with adjustable rate mortgages will feel the sting when their Adjustable Rate Mortgage adjusts in the near future. Consumers who foresee paying an interest rate that is significantly higher may want to consider refinancing to take advantage of the stability of a fixed-rate mortgage.

This is also a good time for home owners to transition into a fixed-rate loan if they can (who, due to a poor credit score, started out in an adjustable rate loan). If a positive track record of making mortgage payments in full and on time can been established, there's a very good chance that they may now qualify for a loan with a lower interest rate.

However, as with any decision to refinance, it is important to take the terms of the existing loan, the cost of the new loan, and your long-term needs into consideration. A qualified Home Lending Solutions Mortgage Consultant will help weigh out your options by providing a clear assessment of available loan programs for you.

Here is some information to help you to better understand how the ARM market works:
In general, when economic data indicates we have a slow-down occurring in our economy, investors tend to sell off stocks and reallocate that money to the safe haven of bonds and mortgage-backed securities. The purchase of mortgage-backed securities drives interest rates down. When economic data indicates growth in the economy, the stock market typically rallies and mortgage-backed securities sell off to fuel that stock market rally. This drives mortgage interest rates up.

Although an increase in the Fed Funds Rate does have a direct impact on financial markets as a whole, mortgage rates are affected rather indirectly, and may go up or down based on the prevailing perception investors have of current economic statistics and their reaction to the Federal Reserve's after-meeting statements. Consumers with revolving debt accounts tied to the prime rate have already felt the impact, as the prime rate always rides 3% above the current Fed Funds Rate. But remember, when an ARM adjusts, the new interest rate is a sum of the borrower's fixed margin plus the current rate of the index the mortgage is tied to.