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My adjustable rate mortgage reset after 5 years and I wasn't ready
Bought a house in Denver back in 2019 with a 5/1 ARM at 3.2% thinking I'd refinance before it adjusted. Fast forward to last month and my rate jumped to 6.8% which added $420 to my monthly payment. Has anyone else dealt with a big payment shock when their ARM reset?
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emma_clark5d ago
See the thing is you actually agreed to this deal when you signed those papers back in 2019. The 5/1 ARM terms were right there in black and white saying your rate could adjust after 5 years. So getting upset now feels like blaming the bank for something you signed up for willingly. Denver real estate values have shot up like crazy since then too, so you probably have way more equity than you started with. Maybe the $420 hit stings but that's the tradeoff for getting that low starter rate while prices were climbing. Nobody forced you to gamble on rates staying low forever
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