About 330,000 homeowners who got an ARM in 2019 have already seen their five-year fixed-rate term end, and 100,000 more will join them in the next year, according to ICE Mortgage Technology.
"Homeowners should be acutely aware of when their rate will adjust, the new potential rate, and any caps that limit rate increases," says William Anthony, a mortgage loan originator with Ace Land Mortgage.
Refinancing might seem like a knee-jerk reaction. However, the process and decision to refinance will depend heavily on the borrower's current rate versus what they would be refinancing into.
For homeowners struggling to meet their newly adjusted mortgage obligations, a loan modification might be the right solution. Modifications can adjust the terms or length of your mortgage, such as extending a 30-year term.
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