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Article: Borrowers should understand adjustable rate mortgages

Article from:
The News Sun - Waukegan (IL)
Article date:
August 25, 2001
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The jitters that borrowers with adjustable rate mortgages experience in the weeks and months before these loans adjust might be unnecessary in the current marketplace, according to Tom Ward, president of Majestic Mortgage Corp., a Mundelein-based mortgage banker and broker. "A lot of borrowers believe that the adjustment date for an ARM is the mortgage equivalent of midnight for Cinderella -- that when the clock strikes twelve, the rate is going to spike and mortgage payments will go through the roof.

But acting on that belief today could be costly," said Ward.

"In fact, current market conditions are very favorable for borrowers holding ARMs, and letting an ARM adjust might be a smart ...

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