A for sale sign stands outside a single-family residence on Wednesday, May 22, 2024, in southeast Denver. Policymakers' willingness to keep their key rate at a two-decade peak thereby keeping costs painfully high for mortgages, auto loans and other forms of consumer borrowing carries its own risks. – Thousands of homeowners with adjustable-rate mortgages are expected to see their monthly payments skyrocket this year.
“A lot of people hear the term adjustable rate and they run in the other direction,” said Charles Bobola, a home loan specialist with Heroes First. “So if you had a five-one adjustable rate mortgage, your interest rate was fixed for the first five years, and then it is allowed to adjust every year thereafter. And so what we’re seeing is some of those adjustable rate mortgages that were taken out in 2019, in 2024, that adjustment period is coming,” he said.
“The mortgage payment is going to be dependent upon obviously, the interest rate that they have, and the amount that they borrowed. But worst case scenario, if somebody were to have, let’s say, 2% adjustment on a $300,000 loan, that would be about $375 a month,” Bobola said.
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