During the recent housing rush, many people got themselves into an ARM (Adjusted rate mortgage) loan did not realize what the consequences of getting into this type of loan involve. Now, when the market gets rough, their ARM rates go sky high, leaving you the homeowner helpless and barely able to make ends meet. The best alternative in this situation may be to look into a home mortgage refinance.

Refinancing a home mortgage is a very popular thing to do lately with mortgage rates at record lows across the country. This is also the most popular type of loan modification that people perform who are in an ARM loan. If you are able to refinance into a fixed rate that is just 1% or hopefully more lower than what your rate is now, you stand to save thousands of dollars over the course of the loan. However, not all people are going to be eligible for refinancing. When the housing boom was all around us, people were able to get a home with no money down, and even get money back at the closing. At the time an ARM loan seemed like it was Gods gift. Rates we're low and everyone in the housing market seemed to think the boon times would not end. They did with the sub prime mortgage crisis that ravaged markets across the country, leaving those in ARM helpless and facing rising costs they have no control over. Today, all over, people with ARM loans are searching everywhere for an alternative as they can not keep up with the sky high interest rates.

Most people have heard about the Federal government dumping billions of dollars into banks in order to stimulate the economy and soften the blow for the housing industry. This money should technically make it easier for people to refinance into a rate that is affordable. The government, banks, and lenders, would rather have you refinance into a lower rate in which they make less profit, than for you to have to foreclose on your mortgage. The governments money has lowered interest rates to record lows across the country. The rapid decline in mortgage rates has allowed homeowners a little breathing room and give them the option to refinance into a manageable monthly payment. This can be a great thing if you are stuck with a rising mortgage payment, and are helpless to do anything about it. Refinance now into a stable 30 year fixed rate mortgage and ensure you future financial stability.

-M Petrone

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