Single-family homes in a residential neighborhood in San Marcos, Texas, US, on Tuesday, March 12. As mortgage rates remain elevated, adding fuel to one of the most unaffordable housing markets in decades, ARMs have gained traction. Last year, when Jennifer Hernandez received notice that the mortgage payments on her Houston home would jump about $2,000 per month, she was stunned.
The fixed period for these ARMs has already reset for 328,000 homeowners – and 102,000 more loans will reset over the next 12 months, according to ICE. But when opting for an ARM, it’s key to keep a close eye on the details, otherwise things can turn difficult, fast. Last October, Hernandez’s mortgage rate jumped by 2% to 5.125%, the maximum allowed in the first adjustment year, according to her loan terms.
“I’ve made it work, but now I’m going to have to figure out how to make it work again this October,” she said. “It’s stressful having to worry about it.”Big Oakland hotel will shut its doors and idle more than 100 workers