Say someone were to get an Adjustable Rate Mortgage, locked in for 10 years (of a 30 year mortgage) at an rate of %5.125, what happens after 10 years? What are your options? I’m not sure how this works. Any help would be appreciated. Thanks!!!

Hi,

My husband and I bought our home 2 years ago on with an adjustable rate mortgage. The interest rate has now come up and we need to refinance.

The problem is that our credit score is about 600.

Can we get a refinance? Our home is worth about 0K, we have K in debt, and we make about 0K per year.
Thanks Bob,

But we really can’t afford the extra costs. Our payment went from 00 per month to 80 per month.

What would the rate be for a credit score of 600?

I want to do a 10/1 30 year adjustable rate mortgage. It is my understanding that the rate will remain the same for the 1st 10 years then adjust. Is this accurate, or can my rate change before the 10 years and if my rate remains the same, does that mean that my monthly payment will remain the same for 10 years, aside from tax and PMI increases?

With mortgage rates on the rise, is it prudent to pursue ANY type of adjustable rate mortgage (ARM) at this time? Or should home buyers be scrambling to lock in fixed rates?

In a simple world, I’d consider this question to be a slam dunk, until you factor in the various ARM options available on the market (1, 3, 5, 7, 10). The questions is essentially, is it possible to pick an ARM with a front-end period (where the rate stays fixed) that essentially "jumps" over the upcoming rate spike?

Naturally, we’re talking about rational home buyer options, NOT interest-free or 40-year loans.
For the record, the ARM options I was considering were 7/1 and 10/1. Because the first 7 (or 10) years are fixed, I would have assumed both to be a viable option. My thinking was that you’d basically be gambling that rates would be better in 7 or 10 years than they are right now. Is a decade of high rates really a possibility?

My husband and I filed bankruptcy and it was discharged in March of 2006. Our mortgage has a 3 year adjustable rate mortgage (ARM) and 3 years will be up shortly. If I don’t re-finance, my rate is going to go up 3%. It’s already high enough! Any suggestions for a company that won’t screw us around?

I just read that foreclosures are up 78% in my state, and a lot of them were because people could not afford to pay on their skyrocketing adjustable rate mortgage. I have never bought a home before, but I would like to know why anyone would choose such a mortgage. Are fixed rate mortgages so much harder to obtain?