Homeowners don't know the type of mortgage they haveMortgagePress.comBankrate Inc., national poll, adjustable-rate mortgages, fixed-rate mortgage Bankrate Inc. released a Bankrate.com poll which found that more than three in 10 homeowners (34 percent) do not know what type of mortgage they own. Furthermore, 28 percent of those surveyed worry about how they will afford their payments. The national poll reveals the confusion and anxiety that homeowners are experiencing today. Another finding is that 34 percent of homeowners with adjustable-rate mortgages (ARMs) do not know what they will do when their loan readjusts. Given that homeowners could be looking at an increase of several hundred dollars each month, this is a staggering statistic. "Clearly, many homeowners are uninformed about their mortgages," said Greg McBride, senior financial analyst at Bankrate.com. "With interest rates stabilizing, it's a very good time to assess whether they should refinance or not. Now may be the time to lock into a mortgage with a fixed rate, which remains near historic lows," McBride added. Other key findings of the poll include: Homeowners -36 percent who now have an ARM plan to refinance to a fixed-rate loan when their ARM changes. -28 percent of those surveyed worry either regularly or sometimes about how they will afford their payments next year. -57 percent of homeowners polled have a fixed-rate mortgage. Renters -40 percent consider affordability the biggest obstacle in buying a house. -Just under 12 percent are concerned their credit rating is not high enough to purchase a home. -38 percent would avoid taking out an ARM when they are ready to purchase a home. For more information, visit www.bankrate.com.
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