Time To Pull Out Those Mortgage Closing Documents

Especially if you are presently in an adjustable rate (ARM) loan or other 'creative' mortgage product.

With mortgage rates on the rise you had better know if, when, and by how much your interest rate may be increasing. Like most people perhaps your memory of exactly what the terms were at closing are a little foggy. After all, 45 minutes of signing endless stacks of documents can rattle anyone.

Now is the time to revisit the fine print to ensure that you know where your mortgage is heading. And whether or not you have the flexibility to make changes now or if you are limited by a 'prepayment penalty.'

Each mortgage ARM has a different fixed-length term and rate adjustment schedule. You rate may change in 6 months, a year, or several years. Once it does adjust there are several indexes your interest rate will follow.

If you're not sure when your rate will adjust don't wait for your lender to tell you. Proactively review the documents yourself and call your mortgage servicer if you are not sure where to find the answers.

-Bill Burniece