Mortgage Lowdown

A recent report by the Mortgage Bankers Association of America shows that 4.7 percent of U.S. mortgages were delinquent at the end of 2005. Outstanding US mortgage debt stands at $9 trillion today and homeowners would do well to use a few tips to avoid mortgage trouble. Emaxhealth.com reports:

Be very careful with ARMs or interest-only loans. These types of loans let borrowers qualify for more expensive homes - but beware as rates (and payments) climb. If you can barely afford the payment on your ARM or interest-only mortgage, you are asking for trouble in a few years when the "teaser period" expires and your loan re-sets to a fixed rate. Be sure you have extra cushion in your budget with these loans.

Read more: Home Loan Tips: Avoid Mortgage Troubles, Other Pangs of Rising Interest Rates

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This entry was posted on Monday, July 10th, 2006 at 11:39 pm and is filed under Refinancing. You can follow any responses to this entry through the RSS 2.0 feed. You can skip to the end and leave a response. Pinging is currently not allowed.