There is decent news today for those of your with adjustable rate mortgages. President Bush just announced a plan to freeze rate hikes on ARMs going forward for a few years. However, the freeze would only apply to people who stay on time with all of their mortgage payments so do not get late if you want to keep your current interest rate! Here is a quote from from the article:
The mortgage companies will offer to freeze the loans at the lower introductory rates as long as the borrowers did not miss any payments at the lower rate.
Also:
Under the administration plan, the rate freeze will apply to loans made at the start of 2005 through July 30 of this year and will cover loans that had been scheduled to rise to higher rates between Jan. 1, 2008, and July 31, 2010.
The plan represents an about-face for Paulson, who until recently had insisted the mortgage crisis could be handled on a case-by-case basis. However, he and other administration officials became convinced the tide of foreclosures threatened by the mortgage resets represented such a severe threat that a more sweeping approach was needed.
Read the whole article here.