Adjustable Rate Mortgages

At a time when many homeowners are facing difficulty paying for their home mortgages, many people now have a better understanding of the difference between fixed-rate loans and adjustable rate mortgages (ARMs). While adjustable rate home loans may work for certain individuals, many people discovered that these loans – which offer a fixed rate for a short period of time and are then subject to changes based on the market rates – can be very dangerous for homeowners.

In some cases, people accepted adjustable rate mortgage loans without knowing how much their loan payments would increase once the initial fixed-rate period ended. Some people discovered that their rate changed so much that they could no longer afford the payments on their homes. If you are having trouble making your monthly loan payments, contact the Maryland mortgage modification attorneys of Chaifetz and Coyle, P.C at 443-546-4608.

Problems with ARMs

Persons who have adjustable rate mortgage loans may find that:

• They were given a “teaser rate” for a temporary period of time (usually one month to a year)
• After the introductory period, the interest rate on the note may be subject to change
• Early payments or pre-payments may be allowed but usually apply toward the total cost of the loan and may not shorten the length of time needed to pay the loan
• Monthly payments increase dramatically over time

Contact Us

If you own a home and are struggling to make monthly payments on your mortgage note, contact the Maryland mortgage modification lawyers of Chaifetz & Coyle, P.C at 443-546-4608 today.