Do you have an adjustable-rate mortgage?

I recently heard a statistic that $2 trillion worth of ARMS are going to adjust in the next 1.5 years. For perspective -- the normal mortgage loan volume in the US annually is about that much.

This means that many of us in and around Raleigh are going to be looking to refinance to avoid the very likely increase in our interest rates. Some steps to take right now:

• Pull out your promissory note from your closing and look for the date of first adjustment
• Make a note of your current rate, your index that your rate is tied to, the margin associated with your loan and your current balance
  
• Call a mortgage consultant to analyze your situation to see if you can head off a big increase in your rate
  

My take on adjustable rate mortgages (ARMS) -- a huge percentage of us have them and a huge percentage of us should have them. As a mortgage consultant, I recommend them to the majority of my Clients because they can be a great financial planning mechanism. Simply put, why pay more for a 30yr fixed rate if the average homeowner gets a new loan (either due to refinancing or selling) every 4.7 years?

Choosing the right mortgage can be a huge step toward the success of your financial plan and reaching your financial goals. Don't think of it as "just a loan" or a commodity -- think of it as a tool to help get you where you want to go.