I've written many articles on refinancing a fixed rate mortgage to an adjustable rate mortgage. I've helped people cut as much as $800 off their monthly payments by turning their high fixed rate mortgage loan into a much lower ARM. This can be the time, however, to put the strategy in reverse, especially if your adjustable rate mortgage is coming higher on the adjustment time period.
If you have an adjustable rate mortgage in the 4 to 5 % range, and it's about to adjust, and if you think you'll be in the home for even more than 5 extra years, you'll wish to strongly think about refinancing your adjustable rate mortgage to a fixed rate mortgage. Here's why.
Rates carry on to remain incredibly low. Fixed rate mortgages in the 5 to 6 % range are extremely great loans. So, if you have an ARM at 5%, and it may even balloon to 6 or even 7%, currently is the time to fix that rate at between 5 and 6 %. Remember, if you intend to remain for your current home for even more than 5 years, fixing that rate is a incredibly wise move.
This way, you will keep your payment low for the life of your loan, and you will eliminate the worry of an adjustment.
Mark Barnes is andy skinner of the new novel, The League, a shocking, sports-related conspiracy. Learn even more about his suspense thriller at http://www.sportsnovels.com. He's as well an investment real estate and home loan finance expert. Get his free mortgage finance course at http://www.winningthemortgagegame.com
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