In recent news, homeowners who have opted for adjustable-rate mortgages are bracing themselves for potential increases in their monthly payments. As the term of their loans comes to an end, many borrowers may face nearly double the amount they were previously paying.

Adjustable-rate mortgages are loans with interest rates that fluctuate periodically, typically starting at a lower rate than fixed-rate mortgages. This type of mortgage is often favored by homeowners who plan to sell their properties within a few years. However, with the initial periods of these loans usually lasting three, five, seven, or ten years, many borrowers will face maturity this year, requiring them to either pay market rates or refinance.

According to Bloomberg, an estimated 1.7 million homes, with an average value of around one million dollars, were acquired in 2019 using adjustable-rate mortgages. As these mortgages mature, borrowers may experience a significant increase in their interest rates. For instance, a mortgage based on the 2019 interest rate of 3.5% could rise to approximately 6.5%, almost doubling the monthly payments for homeowners.

Amidst the rising concern, consumers seeking alternative homebuying options now have a potential solution. United Wholesale Mortgage, one of the country's leading mortgage lenders, recently unveiled a new zero-percent down mortgage program. Under this program, buyers can finance up to 97% of a home's value with a first mortgage, and an additional second mortgage for 3% of the purchase price, up to a maximum of $15,000. Notably, the second mortgage does not require any monthly payments or accrue interest. However, it must be paid back in full upon refinancing or when the first loan is paid off, whichever comes first.

The availability of zero-percent down mortgages has significantly decreased since the market crash in 2008. However, in 2005 and 2006, according to the National Association of Realtors, four out of ten first-time homebuyers utilized no-down-payment mortgages besides those provided by the Veterans Affairs and Department of Agriculture. The introduction of United Wholesale Mortgage's zero-percent down mortgage program presents an opportunity for aspiring homeowners to enter the market with minimal upfront costs.

To qualify for this program, borrowers must meet specific criteria. They either need to have an income at or below 80% of the area median income for the property's address or must be a first-time homebuyer.

As adjustable-rate mortgages near maturity, homeowners across the nation are preparing for potential hikes in their monthly payments. While this situation poses challenges, United Wholesale Mortgage's zero-percent down mortgage program offers an alternative for those seeking home ownership without a large initial investment. As the mortgage landscape continues to evolve, borrowers must carefully evaluate their options to navigate these uncertain times.