My ARM reset caught me off guard by $680 a month last April

I didn't catch the fine print on my adjustable rate mortgage until the first payment hit after the cap came off, anyone else miss a rate lock window on a multi-layer refi?

3 comments

3 Comments

charlie_ellis2mo ago

Actually, it sounds like you locked in a pretty good rate for a while before the adjustment, which is more than a fixed-rate borrower would have gotten during that same period. Most people focus on the pain of the reset but forget the years of lower payments they already enjoyed compared to fixed rates. If you can absorb the $680 bump without breaking the bank, you still came out ahead over the life of the loan.

riley_schmidt2mo ago

Got the same deal a few years ago and it worked out great for me too.

willow1141mo ago

Question whether it's that serious? Come on. SIX HUNDRED AND EIGHTY bucks a month is NOT pocket change for most people. That's a car payment or a serious chunk of groceries. Telling someone to just "absorb it" feels like rich people talk. You don't know if they had to skip medical bills or stop saving for their kid's college to make that work. Sure, they saved on the front end, but that reset could absolutely wreck someone's budget if they were already stretched thin. Not everyone is sitting on a fat cushion to take a hit like that and just smile.