Homeowners with an adjustable rate Nevada mortgage seem to be suffering from a case of refinance fever–and for good reason. The monthly cost of funds index (CFI) for the 11th district, which includes Nevada has went from 2.757 only a year ago to 4.177. This increase has been huge for homeowners whose interest rates follow this index and others like it. The high rate increase has caused a significant hike in mortgage payments and many borrowers with an ARM are looking for a way out.
If your mortgage payments already seem unaffordable and you fear that things are only going to get worse, refinancing to a more dependable fixed rate loan could take off some of the pressure. Even though interest rates are at a four-year high in Nevada, locking in now is better than risking more rate increases later. If you want to keep your adjustable rate loan, you may want to consider refinancing into a hybrid loan or another attractive ARM option.
When Your Loan is Delinquent
If your ARM has already gotten you into trouble, the first thing you will want to do is contact your lender. Chances are your lender will be willing to help you get caught up. Payments can be deferred and other options can be employed to get you by. Your next step will be getting out of the ARM before the loan damages your credit history.
Sometimes homeowners with ARMs panic and refinance too quickly. You can avoid this common refinancing pitfall by taking your time and weighing all of your options. Do a little bit of research, crunch the numbers, and talk to several lenders. When you have more solid information, you will be able to determine whether or not a Nevada refinance loan is right for you.