What happened to my mortgage payment?
Payment shock has become the latest buzzword used by the news media recently to describe a very real problem that some people are facing. For some, you took advantage of the historically low interest rates over the last several years and locked yourself into an unbelievable rate for a fixed period of time. However, others did what they needed to do at the time in order to buy a home and that was to get a low rate and low payment via an adjustable rate mortgage. Well, as with any good thing that eventually must end, you may find yourself in a rising rate and payment environment.
Options are available if you are frightened by what the future may bring to your budget with rising payments. There are ways to stabilize your monthly payment and now is a good time with interest rates remaining quite attractive.
Learn what you have now. Are you paying interest only? How often does your rate adjust? How is the new interest rate computed? What is the term of your mortgage? How much can you realistically pay each month?
How new interest rates are computed is often overlooked when rates are going down. Yet as the prime rate rises, the margin that the lender adds to the prime may be higher than you need to pay. Once again, there are programs that protect you in a rising rate environment that would keep your payment reasonable.
If your current mortgage term with the interest rate fluctuations is getting to be too much, Four Seasons Lending can explore longer term payback options. These options will allow you to have a lower monthly payment because payments are stretched out over a longer period of time. This may be a great alternative for some people until their income catches up to the rising rate environment.
A realistic comfort level about payments is important. Four Seasons Lending will work with you to discuss your options, and plan a budget you can feel comfortable with. If you are uncomfortable now, waiting to research alternatives won't help. Contact us or your mortgage company as soon as you can.
Apply in the privacy of your home of office, or it you wish, contact us and will send you a paper application and assist you with your application process.

