Adjustable Rate Mortgages Bring Higher Payments as Interest Rates Rise24 July 2006
Foxboro, MA (July 24, 2006) Easy Apps Mortgage, a mortgage broker based in Foxboro, Massachusetts with offices in Florida, is urging clients to convert their adjustable rate mortgages to fixed rate mortgages before their payments get out of hand.
An Adjustable rate mortgage loan, also known as an ARM, has an interest rate linked to an economic index. The interest rate, and a person's payments, are periodically adjusted up or down as the index changes.
ARMs accounted for about one third of mortgages granted in 2004 and 2005.
According to a new study by the Federal Reserve economists, many Americans are unaware of the terms of their adjustable rate mortgage and drastically underestimate the amount their loan payments may increase. For example, the principle and interest on a 30 year, $200,000 loan at 5 percent would be about $1,073 per month. At 8 percent, the same principle and interest payment jumps $400 to nearly $1,473 per month.
According to Robert David, President of Easy Apps Mortgage, now is the time to convert from an adjustable rate mortgage to a fixed rate mortgage before interest rates and payments increase. Regardless of a person's credit history, we have mortgage programs available. We realize people are more than just a credit score and we are here to help people succeed in programs to suit individual credit needs. In most cases, less than perfect credit is not a problem when it comes to finding a mortgage.
Easy Apps Mortgage has a 60-second mortgage application online and a friendly staff. Contact us today before your mortgage becomes unaffordable, says David.
About Easy Apps Mortgage
Easy Apps Mortgage is your MA and FL mortgage loan specialist. They can be reached toll free at 888-441-3279 or on the web at www.easyappsmortgage.com.
Source: prweb
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