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  • Casual Articles - Payments Rising? Refinancing Adjustable Rate Mortgage Loans

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    ce their mortgages into lower rates, there are a lot of people switching from adjustable rate mortgages (ARMs) to higher fixed-rate loans. Why? Holden Lewis from Bank
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    The popularity of adjustable-rate mortgages means that nearly 25% of all outstanding U.S. mortgage debt is due for an interest-rate reset within the next two years, according to Economy.com, a Web site run by Moody's Corp. Some $400 billion in loans will get a new rate this year, and another $2 trillion are set to move in 2007. With rates on the rise, it is good idea to start weighing your options. Interest rates have gone up considerably during the past few months and now could be the time to lock in on a fixed-rate mortgage.

    What if my ARM rates are lower than the current rates for a fixed-rate mortgage? While it's more common for people to refinance their mortgages into lower rates, there are a lot of people switching from adjustable rate mortgages (ARMs) to higher fixed-rate loans. Why? Holden Lewis from BankR

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    ccording to Economy.com, a Web site run by Moody's Corp. Some $400 billion in loans will get a new rate this year, and another $2 trillion are set to move in 2007. With rates on the rise, it is good idea to start weighing your options. Interest rates have gone up considerably during the past few months and now could be the time to lock in on a fixed-rate mortgage.

    What if my ARM rates are lower than the current rates for a fixed-rate mortgage? While it's more common for people to refinance their mortgages into lower rates, there are a lot of people switching from adjustable rate mortgages (ARMs) to higher fixed-rate loans. Why? Holden Lewis from Bank

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    th rates on the rise, it is good idea to start weighing your options. Interest rates have gone up considerably during the past few months and now could be the time to lock in on a fixed-rate mortgage.

    What if my ARM rates are lower than the current rates for a fixed-rate mortgage? While it's more common for people to refinance their mortgages into lower rates, there are a lot of people switching from adjustable rate mortgages (ARMs) to higher fixed-rate loans. Why? Holden Lewis from Bank

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    lock in on a fixed-rate mortgage.

    What if my ARM rates are lower than the current rates for a fixed-rate mortgage? While it's more common for people to refinance their mortgages into lower rates, there are a lot of people switching from adjustable rate mortgages (ARMs) to higher fixed-rate loans. Why? Holden Lewis from Bank

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    ce their mortgages into lower rates, there are a lot of people switching from adjustable rate mortgages (ARMs) to higher fixed-rate loans. Why? Holden Lewis from BankRate.com gives these three reasons in his article "Refinancing out of an adjustable-rate mortgage (ARM)":

    First, some refinance after deciding to keep the house longer than they originally intended. Second, some refinance because it's easier to make firm plans for the future if their mortgage rates can't fluctuate. Finally, some have simply changed their minds about mortgage rates, and think they're headed up for a long time.

    Length of ownership seems to be the most-common deciding factor when people switch from ARMs to higher-rate fixed-rate loans. Debt consolidation is another deciding factor with the new bankruptcy laws making it harder for p

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