The Carvajal Group Blog

Payment Shock: It’s not a Medical Condition

June 20th, 2008

In the way of the recent mortgage crisis, a new phenomenon has popped on the real estate mortgage market radar.  Payment shock is an event that takes place usually from predatory lending.  People who are unaware that they are signing onto an adjustable-rate mortgage (ARM), a balloon interest loan or some other obscure financial package, are suddenly present with a much higher payment than anticipated.  A recent study found that certain social economic groups and ethic groups are at greater risk of experiencing payment shock. 

It is important to remember that when you are signing a contract to buy a home, you are entering into a legally binding contract.  Know everything that you can about what you are doing.  Spend the time to do the research and get sound advice before signing on the dotted line.

For more information on ways to prevent experience payment shock, call the real estate specialists at the Carvajal Group at 512.419.7770.

Tags: Austin Home Search · Austin Real Estate · Austin Real Estate Agent · Buying homes in Austin