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  • Casual Articles - Adjustable Rate Mortgage Teaser Rates: How to Avoid Contract Shock

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    ctual contract rate is buried in the loan paperwork. The larger the difference between the teaser and the contract rate
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    Many homeowners who take out Adjustable Rate Mortgages experience payment shock when their teaser rate runs out. This is because many borrowers don’t understand the difference between the teaser rate and the contract rate of their Adjustable Rate Mortgages. Here are several tips to help you avoid contract shock when refinancing with an Adjustable Rate Mortgage.

    Mortgage lenders lure homeowners to their products with teaser rates and frequently do not explain that their actual contract rate is buried in the loan paperwork. The larger the difference between the teaser and the contract rate,

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    s because many borrowers don’t understand the difference between the teaser rate and the contract rate of their Adjustable Rate Mortgages. Here are several tips to help you avoid contract shock when refinancing with an Adjustable Rate Mortgage.

    Mortgage lenders lure homeowners to their products with teaser rates and frequently do not explain that their actual contract rate is buried in the loan paperwork. The larger the difference between the teaser and the contract rate

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    They’re an alluring proposition. Like the mythic sirens luring sailors to the rocks, credit card companies offer nonstop mailings to perspective customers, trying to get them to transfer credit card balan
    e Rate Mortgages. Here are several tips to help you avoid contract shock when refinancing with an Adjustable Rate Mortgage.

    Mortgage lenders lure homeowners to their products with teaser rates and frequently do not explain that their actual contract rate is buried in the loan paperwork. The larger the difference between the teaser and the contract rate

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    Mortgage lenders lure homeowners to their products with teaser rates and frequently do not explain that their actual contract rate is buried in the loan paperwork. The larger the difference between the teaser and the contract rate

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    ctual contract rate is buried in the loan paperwork. The larger the difference between the teaser and the contract rate, the greater the chances of contract shock for the unsuspecting homeowner. Here’s an example of how a teaser rate can land you in hot water.

    Suppose you refinance your mortgage with an Adjustable Rate Mortgage at 2.95%. This is an amazing deal that should be setting of warning bells; however, this teaser is only valid for 12 months. At the end of the 12 month period the teaser will change to the contract rate. The lender will then adjust the contract rate to the index

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