Is financing bomb set to go off on owners?
Trouble seen with looming end of short-term loan rates
With many [tag]interest-only[/tag] and other “[tag]non-traditional[/tag]” [tag]mortgages[/tag] set to adjust upward, some local [tag]real estate[/tag] and lending professionals think the end of the year might bring some unpleasant news. In late 2006 or early 2007, many homeowners will see introductory fixed rates expire on interest-only and other types of adjustable loans they first took out over the past five years.
Some [tag]homeowners[/tag] with interest-only and other nontraditional adjustable loans could be squeezed in the current atmosphere of rising interest rates, slowing sales appreciation and growing inventories of unsold homes. What to do in the meantime? “My advice would be to lock into something fixed now, even if you have to get a second job to make higher payments,” said Carl Ingram, an agent with Keller Williams Realty in Rancho Mirage, pointing to long-term rates that remain historically low.