It May Be Time to Switch from Adjustable to Fixed-Rate Phoenix Mortgages

The Federal Reserve has raised short term interest rates yet again. So what impact will this have on Phoenix, Arizona? It could cause the hot Phoenix real estate market to cool, but more likely than that, it’s going to cause holders of adjustable rate Phoenix mortgages a big headache.

Homeowners with adjustable rate Phoenix mortgages have had it good over the past year, as interest rates have hit historical lows, but now if they want to save money, they’ll have to make some adjustments. As adjustable short term interest rates inch upward, they “may surpass those of 15 or 30-year fixed-rate mortgages.” This means that if homeowners with adjustable rate Phoenix mortgages don’t refinance soon or lock into a fixed-rate loan now, they will most likely begin to see fairly large increases in their mortgage payments.