When Your ARM Becomes Adjustable

Most Adjustable loans are coming "due." This goes for the 5-year fixed loans acquired in 2003, 3-year loans from 2005 and the last of the 2-year fixed loans from 2006. In most cases, people have been paying Interest Only on these loans. In the case of the 5-year loan, borrowers haven't paid down any principal, so at the end of the 5-year period, you only have 25 years left on your loan, PLUS most loans will now require you to pay Principal AND Interest. Your Rate will become Adjustable with a "Margin" plus an "Index." In most cases, you've got a TRIPLE THREAT: Principal and Interest plus a variable and probably higher interest rate plus a shorter life span on the loan. All three factors compound and your payment goes UP. Every loan is different. I'm your Advisor, I'm your neighbor's Advisor, I'm your family and friend's Advisor. Take action while rates are low. Let's Talk. Pat Townsley, Mortgage Advisor. 415-485-1776. http://www.ptre.net/