Mar

29

Apathy and Ignorance

Filed Under mortgage, personal finance 

“Is it ignorance or apathy? Hey, I don’t know and I don’t care.” - Jimmy Buffet

Apathy: the trait of lacking enthusiasm for or interest in things generally
Ignorance: the lack of knowledge or education

According to a Bankrate survey 34% of homeowners don’t know the type of mortgage they have.

These were the key findings of the survey:

Homeowners:

  • 36% who now have an Adjustable Rate Mortgage (ARM), plan to refinance to a fixed-rate loan when their ARM changes
  • 28% of those surveyed worry either regularly or sometimes about how they will afford their payments next year
  • 57% of homeowners polled have a fixed-rate mortgage

Your home is your biggest asset/liability depending on how you view your home. Most people either have one of three kinds of mortgages because there are only three kinds:

  1. fixed rate mortgage which means it’s fixed for 10, 15, 20, 30, 40, 45, or 50 years
  2. an adjustable rate mortgage which means it’s not fixed, it will adjust at some point
  3. a negative amortization mortgage which means if you don’t know what kind of mortgage you have then this loan is not for you

If you don’t know the mortgage interest rate and the mortgage loan program you’re in, simply find your mortgage documents and find your NOTE and read it!

Is your rate too high? If you're looking to compare mortgage rates or to get a rate quote on a FHA loan start here


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