If the family budget is already strained or an adjustable rate mortgage increase is just around the corner a realistic view of reality is required. What many people do not realize, and many homeowners find alarming, is that a refinance into an ARM only saved about $100 per month on average. After a reset the home is basically lost. It is tragic. But what about that budget if you decide to work 2 jobs, or supplement your income in another way? Let look at the economy for starters:
Oil’s 80 percent gain during the past year is the second biggest among 19 commodities on the Reuters/Jefferies CRB Index, trailing only wheat, which doubled. Rising global demand for raw materials and a weakening dollar have led to records this year for raw materials including corn, soybeans, rice and gold. Everything will increase in price as higher diesel fuel costs are passed to consumers.
Do you have another ARM reset after this one? Is it time to cut and run if your lender will not work with you? Is bankruptcy and option? These and others are questions that need answers today, and must be viewed with a hard dose of reality.