I just don't get it.
Maybe I'm being obtuse.
I read more and more articles about all the adjustable rate mortgages people have that are about to reset and how the entire country will go into foreclosure and the government and banks should do everything they can to help out all the poor souls who got in over their heads when times were good.
Actually, this article gives me some hope that the world is not going crazy... as it outlines a plan in which most people are left being responsible for their own decisions.
If you have an adjustable rate mortgage, refinance it, plain and simple. But wait you say, rates are not good... there is a credit "crunch."
Is it possible that the only crunch you should be worried about is the crunching of cold hard cash in you pocket after you lower your monthly payment?
I live near Boston, not a cheap place to live. 30 year fixed mortgage for no points available today at 5.625%.
I don't care what your lender told you your ARM might reset to, if you can't afford your home loan at 5.625%, you can't afford your home. (Sure there are evil lenders who mislead borrowers, and they should be punished and their victims should be helped).
If you live in the Boston area, check out Powder House. I get no compensation for the referral, I used them myself to refinance several years back for 5.375% with no points. Their closing costs are not the lowest, but for these rates with no points, I have not found a better deal.