Can I Refinance My ARM to a Fixed Rate Home Mortgage-What If I Have No Equity Or Bad Credit and An ARM Loan
Adjustable rate home loans were employed by many home owners throughout the previous decade to purchase or refinance their existing home loans. Many home owners have refinanced their ARM to a fixed rate mortgage so they would stear clear of the virtually certain mortgage rate and payment increase.
Unfortunately there is a great amount of people who are blind to the fact that the home loan they currently are in is going to adjust because they just do not understand the loan. for alot of these people the increase will be a real eye opener and a possible money crisis.
How Will I Find Out If I Have a ARM Loan
To find out if you have an ARM loan you need to assemble your loan documents you were presented at closing. You are looking for something called the adjustable rate rider. This paper will list the guidelines of your adjustable home loan and If you discover this in your loan bundle you hold an ARM. Analyze this document as it will tell you when your loan is supposed to change and by how much.
Changing To a Fixed Rate Home Loan
If you have an ARM mortgage and still have good credit and some equity in your home you should act now and take advantage of the current low interest rates. And by taking advantage of the low rates and refinancing with a fixed rate mortgage you will get stability and in alot of instances a lower house payment then your adjusted ARM required.To do this you will simply have to do a common mortgage refinance.
What Can I Do When I Cannot Get a Loan To Refinance
If you are a home owner that can't refinance ARM to fixed rate because of poor credit or holding insufficient equity in your property you are on the road to some rough situations. To avoid this you must talk to your mortgage lender and try to work out a mortgage modification with them.
If you have always been a dependable client lenders will often times alter ARMS that are challenging for customers to pay into better and more unchanging fixed rate loans.