How long should I pay the minimum on an option arm on my mortgage? Will it hurt my credit?
by Mortgage Rates on Monday, October 11th, 2010 | 4 Comments
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Never pay the minimum if you can afford it. Pay all you can toward principle therefore lowering your loan amount an lowering the amount of interest you pay
Paying the minimum amount each month is not going to affect your credit, as long as you keep paying in time.
BUT… I’m a loan officer and lately all I seem to be doing is rescuing clients from this type of loan. It’s very similar to what happens when you pay the minimum monthly on a credit card balance… you keep paying and the amount you owe keeps growing every month.
Unless you are in an area where home prices are going up REAL FAST, I wouldn’t recommend it… These loans usually have very high interest rates, around 8-9% and usually will penalize you up to 6 months’ worth of payment if you try to refinance. 90% of the time, people end up owing way more than what their house is worth. Just look at your bill… you’ll see how much is being added to your balance every month.
arms are good when interest rates are going down. i hear alot of people saying it will go up and if rates do go up, well youll be paying more $$$$.
i think you should double of your minimum it will be good on your credit so this way you will not loose your home.the chances are good to nothing. it will show that you have good credit in the future. iwish i could own a home but i cannot afford it so i will not bother. so keep makin payments and be happy that you own a home cause some people are loosin homes cause of the higher payments and charges as well. good luck on your house.