From REALTOR Magazine:
Daily Real Estate News | October 15, 2007
Study: ARM Borrowers Don’t Know the Terms
A national survey of 500 adjustable-rate mortgage borrowers found that 73 percent don’t know how much their monthly mortgage payment will increase the next time the rates go up.
The survey, which was conducted for the AFL-CIO labor union, indicates that borrowers are unprepared for the burden of higher mortgage payments. One in five borrowers don’t know their current loan rate, and 25 percent don’t know when their lender will raise the rate.
“Predatory lending practices not only involve sticking consumers with bad loans, but also in failing to provide home owners with the basic information they need to survive in this market,” AFL-CIO President John Sweeney said in a statement.
Source: Reuters News, Patrick Rucker (10/14/2007)
If you are one of the 73% of borrowers who don’t know how much your ARM mortgage will adjust, or when, it is time to call your mortgage company. If you would prefer, I can refer you to a local representative for your mortgage company. They can help you understand the terms of your loan and research your options. They can even help you find out if refinancing will help you.