As in many areas of life, people often prefer certainty when it comes to their mortgage payment. For this reason, the idea of going with an adjustable-rate mortgage (ARM) is often dismissed out of hand. However, there are certainly reasons to consider it, particularly if you’re refinancing to save money. We’ll discuss the pros and cons of an ARM refinance, but let’s start with the basics.
If you’re thinking about refinancing your mortgage, it’s good to be prepared. After all, refinances typically take a month or two to complete, and delays in getting your lender the information they need from you can stretch that timeline even further. Having all your documentation ready can help the process go more smoothly.
With so much to think about when you’re applying for a mortgage, it’s hard to give even a second’s thought to how you actually make those monthly payments once you begin your repayment of the loan.
In order to get preapproved for a mortgage, your mortgage lender will need to verify your income and asset information to determine how much home you can afford and the interest rate you’ll pay on the loan.
While we aren’t beyond the pandemic by any stretch of the imagination yet, the fundamentals have grown stronger. The Federal Reserve tried to impart that message last Wednesday, while still pointing out that they were prepared for any change in course. For the first time, the Fed talked about discussions to slow asset purchases.
If you’re feeling overwhelmed by debt, you’re not alone. Many Americans are dealing with major credit card debt on top of mortgages, student loans, car loans, and medical bills. With some of the highest interest rates of any debt, credit card debt is one of the worst to carry. In fact, consumers pay double or even triple the interest rates on credit cards than they do on most auto loans, student loans, and home loans.
