Formerly Homeless Mortgage Executive Warns About Interest Rate Increases for Adjustable Rate Mortgage (ARM) Loan Consumers
Over two trillion dollars in Adjustable Rate Mortgage (ARM) loans are set to start adjusting in the next two years. This means higher interest rates and higher mortgage payments for consumers.
(PRWEB) June 5, 2006 -- With the economy moving strongly forward, inflation is on the rise -- which also means that home loan rates are on the rise. WSJ Online reported in March of this year that "More than $2 trillion of U.S. mortgage debt, or about a quarter of all mortgage loans outstanding, comes up for interest-rate resets in 2006 and 2007…”
Darren Meade of Victory Mortgage Lenders has found through his experience with mortgage consumers that most are unaware that their rate and their payments are getting ready to increase dramatically. “And unfortunately, there are many cases where the consumer may be unaware that they even have an ARM loan, let alone that it is getting ready to adjust very soon.” Many economists are concerned that when the payments start to increase, it will have a massive impact on consumer spending…which in turn, will impact the US economy as a whole.
"Millions of Americans who stretched themselves financially to buy homes face a painful adjustment -- some could even lose their houses -- as monthly payments on adjustable-rate mortgages are reset higher.” (WSJ Online – March 2006)
Resets will "eat into discretionary spending" for many Americans, says Joshua Shapiro, chief U.S. economist at MFR Inc., an economic consulting firm in New York.
Homeowners need to be made aware of the facts surrounding these issues as soon as possible, so they can evaluate their options and make good decisions for their future.
Darren Meade of Victory Mortgage Lenders, is a local mortgage industry expert who is prepared to discuss these issues and potential solutions for homeowners about their specific local markets.
Left homeless as a teenager, Mr. Meade takes to heart the potential financial distress many unsuspecting consumers will face. Educating consumers about fiscal literacy and industry trends in a manner which is easy for them to understand is the cornerstone to helping consumers strategize their long term financial goals. In a recent interview Mr. Meade expressed that “No one should ever have to lose their home and live on the street, especially after spending half your life building your career, your family and your future.”
Darren Meade can be contacted at (866) 676-4325 to discuss local and nationwide real estate markets, the “alleged” housing bubble, if it is better to buy vs. rent or the impact of adjustable rate mortgages (ARMS). You can also find this information as well as other mortgage facts versus fiction at www.VictoryLenders.net.
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