Monitor Your Mortgage

It is important to keep an eye on your mortgage options during an economy of interest rate hikes. For example; if you have a 1-month aadjustable rate mortgageĀ (ARM), you may notice that your monthly mortgage payments will increase during any rate hikes, while a longer term ARM will only adjust after the fixed portion of the ARM has expired. For example; a 5-year ARM will remain fixed for five years and then begin to adjust in the sixth year. If the fixed portion of your ARM is expiring soon and you are planning on staying in this home for a long time now would be a good time to consider switching to a long term fixed rate mortgage (FRM). With a FRM you will be paying a slightly higher interest rate, but the rate will be capped so it will not change for the length of the loan, which could be as long as 30 years. Just a tip for those with a mortgage that is on a flexible rate or is a ARM mortgage.

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