When the two or three year period on most ARM mortgages from "subprime" type lenders expire, your interest rate and payment will very likely go up here in 2006. The method used to calculate the new interest rate and payment is specified in a document called the Adjustable Rate Rider, however most work basicly the same.

When the fixed portion on your adjustable rate mortgage (ARM) is expiring it means that your rate and payments will be increasing. Contact a mortgage broker about refinancing into a lower rate mortgage.

It is very important to keep your mortgage payments up to date, particularly if they have recently adjusted. A strong mortgage history will help you qualify for the best going rates when you refinance.

Many people will refinance their home mortgage loan into either a fixed rate mortgage or into another adjustable rate mortgage before their interest rate on their ARM, adjustable rate mortgage loan, is about to make its first adjustment. Refinancing your ARM loan can save you money from a big increase in your interest rate and monthly payment when interest rates are on the rise.

If the fixed rate on your ARM loan is expiring, you could be in for a case of payment shock.
The good news is if you've had an adjustable rate mortgage for the last 2 or more years, you have probably saved thousands of dollars that you would have paid with a fixed rate mortgage.
However, now is a good time to look at refinancing to a lower rate fixed rate mortgage or intermediate ARM.

In most cases your adjustment period begins the same time your prepayment period ends. You will most likely be recieving several solicitations to refinance by mail. If you like the work your mortgage broker did when you first got the mortgage it might be best to go to them for your refinance. They have all of your records on file already, they are fimilar with you and your situation already.

You can check your loan documents to find out exactly when your loan is set to adjust. This should give you time to prepare and know when you need to look into refinancing your loan.

Some Lenders sell the information of customers whose fixed period of ARMs are expiring.

Make sure that you keep abreast of the time and exact date that the adjustment will take place. If you refinance before the adjustment date, you may be subject to a pre-payment penalty.

If your adjustable rate ARM mortgage is nearing the end of its fixed period, you'll be surprised to know that your current mortgage company is least likely to provide you with the best deal when you refinance into a fixed rate mortgage. Due to a lack of competition, and what generally amounts to complacency amongst the majority of borrowers, big lenders and servicing companies often make much more money the second time around, charging huge hidden fees because they believe the borrower will not notice. Smart homeowners nationwide know the value of getting a second opinion before making any decisions about refinancing their expiring ARM into a Fixed Rate mortgage. For a free, no obligation evaluation of your current situation, including a no-nonsense look at the options available to you, contact one of our seasoned financial professionals at or via email at info@themortgageinfoguide.com

In some areas in the country were the home was purchased with a 2/28 ARM borrowers may be unable to refinance their ARM mortgage. The reason for this is that property values in some areas have fallen drastically making the house worth less they the borrower originally paid for the property.

If you have misplaced your loan documents, you can sometimes look up the specific information on your Adjustable Rate Mortgage at the county courthouse. Look for the Adjustable Rate Rider, which details the terms of your adjustable rate loan (when the rate will adjust, what percentage it will adjust to, etc).