ARM Resets - What Can You Do?

Adjustable rate mortgages (ARMs) continue to reset to higher interest rates. Some folks who enjoyed low payments are shocked when they see how much their mortgage payment has increased. A recent Marketplace Money story discusses how you can avoid trouble by being proactive.

Bankrate.com's Greg McBride sums things up by saying

"if you have no idea if your mortgage is about to reset, ignorance is not bliss".

Indeed, you will not do yourself any favors by sticking your head in the sand. Find out what you're in for, and do something about it if needed. Try to negotiate with your lender if you can't make the payments, or investigate refinancing options. If you start missing payments, your options will dry up fast.

Further reading:

• View or listen to the Marketplace Money story
• High Risk Mortgages
• Refinance - Definition