Most homeowners in the U.S. who took out adjustable-rate mortgage loans are likely to see a spike in their monthly payments soon. Adjustable-rate mortgages are loans with an interest rate that will change throughout the life of the mortgage, meaning monthly payments may go up or down over time, according to mortgage buyer Freddie Mac.
The financial data media organization released a recent poll noting that approximately 70% of adjustable-rate mortgage holders say they’re concerned about making their new monthly mortgage payments given rising interest rates. Meanwhile, one in 10 respondents admit they may delay or default on their mortgage once it adjusts. Citing Bankrate, Newsweek noted that adjustable-rate mortgages for five years are around 6.5%, nearly double the rate several years ago.