A Ray of Sunshine on the Mortgage Front

Well, it’s about time that we got some good news, albeit just a small tidbit. According to a recent article by Sam Ali for Newhouse News Services, homeowners who refinanced in 2003 with a 5/1 ARM could be in for a mortgage payment reduction this year, rather than a shocking increase. Those who opted for a hybrid loan, where you have a fixed interest rate for the first five years and then a variable rate that changes annually after that, could see their monthly payments become lower, all thanks to their predecessors and the mortgage boondoggle that occurred. With interest and federal fund rates lower at the moment, a move the feds have taken to help borrowers and lenders both, the reset of those 5/1 ARM loans could be cause for celebration rather than panic.

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