Is Your ARM Broken…Or Is Your ARM Making You Broke?

Is Your ARM Broken…Or Is Your ARM Making You Broke? Since the Federal Reserve recently stopped it’s three year crusade to increase the Prime Rate every six weeks, most people with adjustable rate mortgages (ARMs) expected their already high rate to stabilize. Unfortunately, it takes up to 18 months for the indicators linked to some ARMs to “catch up” to a stable Prime Rate. This means many homeowners have seen their rate continue to creep upward in the last few months, despite the lack of change in the Prime Rate. The increasing interest rates, which means ever increasing payments, have left many homeowners scrambling to make their next mortgage payment, and its also a major factor in the nationwide increase in foreclosures. In many states in the southeast, l View the rest of this article