CHARLOTTE, N.C., June 16, 2006 - Inflation continues to grow as a serious concern for both the Fed and the public. Consequently, interest rates are likely to rise for the 17th straight time in two years on June 29 when they meet again. The question is: should consumers refinance their adjustable rate mortgage (ARM) to avoid payment shock due to rising rates?
According to Anthony Hsieh, president of LendingTree.com, “The Feds are tough inflation fighters. They learned from the past that getting behind inflation versus preventing it can lead to much higher rates in the long run.”
But there is good news for homeowners with ARMs. By locking into a fixed rate mortgage now, borrowers can actually get a lower interest rate than what an adjustable rate mortgage could otherwise jump to.
“There’s a large population of ARM holders out there. If you have long term plans for the home, meaning more than five years, you really ought to consider refinancing into a longer term fixed rate product. Short term rates are going up, and long term rates will likely follow. It’s a good time to reevaluate."
About LendingTree, LLCLendingTree, LLC is the nation’s number one online lending exchange, providing a marketplace that connects consumers with multiple lenders that compete for their business. Since inception, LendingTree has facilitated more than 18 million loan requests and $141 billion in closed loan transactions. LendingTree provides access to mortgages and refinance loans, home equity loans/lines of credit, auto loans, personal loans, and credit cards via www.lendingtree.com and 800-555-TREE.
Founded in 1998 with headquarters in Charlotte, North Carolina, LendingTree, LLC is part of IAC Financial Services and Real Estate, an operating business of IAC/InterActiveCorp (NASDAQ: IACI), which also owns or operates LendingTree Loans, LendingTree Settlement Services, LLC, GetSmart®, RealEstate.com®, Domania®, and iNest®.