Is A Mortgage Payment Time Bomb Coming?

As the Feds raise rates it brings into light possible payment problems on the horizon with all the Arm Mortgages that have been done in the last 3-4 Years. Most of them were 3 or 5 Year Arms so they are just starting to adjust. The 3 Year Arm will go up 2 Percent but the 5 Year Arms can go up the full 5% on the 5th Year first Adjustment (which a lot of Borrowers do not realize) for most of the 5 Year Arms so there will be a HUGE payment adjustment coming up soon within the next year or so. Time will tell of the damage to be inflicted on the borrowers but we see trouble ahead. If they have not kept the credit up they may not be able to refi into a fixed loan. If you have such a loan think seriously about it. Is your credit still good? you need to stay on top of it by checking it at My Fico.Com or Equifax. Do not get caught with a ticking time bomb on your hands. If you are a new borrower we strongly suggest you stay with a fixed rate mortgage. It takes a lot of stress out of your life now and in the future. www.rateinformer.com