Hmmmmm, what are ARMs? Well let me tell you a bit. They are adjustable-rate mortgages and I strongly suggest you stay away from them. Oh sure the interest rate may seem very inviting considering it is usually about 2 percent lower on a 30 year mortgage. The problem lies in the adjust part. You see if the economy does anything stupid the loan can and will be adjusted. This could shoot your interest rate up as much as 5 to 10 percent. That in essence could easily double your mortgage payment. I don’t know about you but if my mortgage payment doubled overnight I would be in trouble. So don’t get yourself in the position of having to stop foreclosure. I strongly suggest staying away from ARMs
Another thing to do so you don’t find yourself in a position to stop foreclosure is make sure you have a handle on your finances. I don’t care who you are and how you horde your money. The average person still has months that things are difficult for whatever reason. There are times when you may have to juggle some payments. Well the one payment you really want to avoid juggling is your mortgage payment. You see while it’s not great practice you won’t find yourself in the position to stop foreclosure if it’s a credit card payment you are juggling instead of a mortgage payment.
Keeping your credit and debt obligation is a good way to make sure you are never in a position where you have to stop foreclosure. You definitely don’t want to be applying for any other credit around the time you will be getting your mortgage. Too many credit enquiries are not good for your credit score and could result in a higher interest rate on your mortgage. You also want to stay away from any other large purchases around the time you are buying a house. You see most institutions say that your debt obligation should be less than 36% of your gross monthly income. If you get in around or above that number it could make a big difference in your interest rate on your mortgage. So if you don’t want to find yourself in the position to stop foreclosure then here are a few small tips that can easily be followed.
My partner and I work very hard to help people on the internet with various differant subjects. we do well because we do a good job of researching. Keep tuned to this blog and also check out our relationship blog
Also check out our growing squidoo lenses by clicking links below
No comments:
Post a Comment