ARM Alert: Adjustable Second Mortgage Rates Increasing
By Tobi Jackson

Homeowners from San Diego, California to Bangor Maine are now taking a hit as adjustable mortgage rates increase. Some financial experts say many are struggling to make ends meet trying to pay the house note. In recent years many houses were sold through adjustable mortgage rates offered low monthly payments. But now mortgage & home equity rates are going up, and borrowers are paying higher monthly payments than they had anticipated.

Jason Pizzinat, loan officer with Home Equity Mart & Equity Access, says ARM’s are not recommended for everyone...

People who have sketchy job histories, or fixed incomes should stay away from adjustable rate mortgages, or variable home equity lines of credit. Pizzinat continued, "Look at the 30 year fixed rate mortgage & the 5 year ARM. The difference in rate is about a quarter of a percentage point. Hardly worth the risk!” Pizzinat says ARMS are good for people who may have employment that moves them every few years or people who are planning to move.

• Did you know that the Fed has raised key interest rates 15 times since 2004?
• Does anyone think the new Fed chairman is done increasing the interest rates
• Consumers with adjustable rate 1st or 2nd mortgages need to reconsider refinancing now for a fixed rate

More industry insight from Jason Pizzinat can be viewed at www.smarthomefinancing.com.

Mr. Tobi Jackson is a freelance writer, and financial analyst that writes mortgage related articles for www.mortgageloanoutlet.com. Please contact Mortgage Loan Outlet, inc. if you want to republish this article.

Please view our other Mortgage Articles.