With an adjustable rate mortgage, you’re often at the mercy of the financial markets. In a rising mortgage rate environment, you could find yourself paying hundreds of dollars more per month for your home mortgage. Our team at Mortgages Diversified can help alleviate the stress of a rising interest rate environment. Here, we’ll delve into your adjustable rate mortgage options.
If you are finding that your adjustable rate mortgage has become too costly, it might be time to discuss the refinancing process with your lender. Most lenders will be more than happy to accommodate changes to your rate in order to ensure that payments are made on time and according to the agreed upon schedule. Before refinancing, make sure you have access to the required paperwork and that your credit rating is high enough to ensure a lower rate on your new mortgage.
When exploring your adjustable mortgage rate options, make sure you have a full understanding of your housing costs. For example, find out how much you’re paying per month and whether you can afford to pay more over a shorter period at a higher rate. Review your savings levels to determine the potential value in paying down your mortgage. Always speak with an expert about the rising interest rates and the impact these rates might have on your mortgage.
Avoid taking out further loans
Outside of your mortgage, this is not the ideal time to take out further loans using your mortgage as collateral. With the rising interest rates across the country, it’s now time to consolidate your debt levels and make a firm plan for your financial future. You can look to debt consolidation and other options to refinance your debts repayments at lower rates before they rise in the coming year.
While interest rates remain stable, they are historically low and will likely rise in the short-term. Make sure you have the information you need to protect your financial future by consulting with our team at Summit Mortgage Corporation. To discover more about refinancing and your full range of options, call our team today.