There’s good news for those shocked by rising payments on interest-only and adjustable-rate mortgages. It’s possible an insurance product may help eliminate some of the stress.
Interest-only loans and adjustable-rate mortgages, made popular when interest rates dipped below 5 percent, made low monthly payments possible even when borrowers put little or no money down.
However, many homeowners are now seeing payment increases as low introductory rates increase and interest-only periods end.
Experts believe the increases are contributing to rising foreclosures-up 45 percent in January, according to foreclosure listing service RealtyTrac.
“One trillion dollars worth of mortgages will reset to new interest rates next year-we could be facing a major crisis,” said Bill Ruh, Government Affairs Director of the California-based Citrus Valley Association of Realtors. “Buyers may think they can only purchase a home using a short-term or fancy combo loan, but the reliable 30-year-fixed mortgage is an attainable and secure option.”
While many have tried to avoid it in the past, new types of private mortgage insurance...
To view and download this full PLR article, you must be logged in. Registration is completely free. Once you create your account, you will be able to browse, search & downlod from our PLR articles database of over "1,57,897+" on 1,000's of niches and 200+ categories without paying a penny. Click here to signup...
