Reported 12 months ago
Many homeowners who took out adjustable-rate mortgage (ARM) loans are facing significantly higher monthly payments this year as interest rates have remained elevated. Data from Intercontinental Exchange shows that 1.7 million homeowners have bought homes with ARMs since 2019, with 328,000 loans already resetting and 102,000 more set to reset in the next 12 months. Despite the risk of increased rates and historical issues following the subprime mortgage crisis, the popularity of ARM loans has doubled in the past four years. While ARMs may be suitable for some, it's crucial for borrowers to understand the terms and risks involved to avoid unexpected financial stress.
Source: YAHOO