Some states step in to help borrowers in danger of losing homes to adjustable rates.

Ohio, Massachusetts, New York, New Jersey and Pennsylvania have all set up special programs to provide fixed-rate mortgages to people whose adjustable rate has jumped so high that it is forcing them into default on their mortgages.

The program in Massachusetts is typical. They are planning to save about 1,000 foreclosures with some help from mortgage giants Fannie Mae and Freddie Mac. They hope to have $250 million for the program, including $60 million of state borrowing.

Borrowers in the Mass. program must be no more than 60 days behind in their mortgage payments and have incomes that do not exceed 135% of the median in the Boston area. If qualified they will be issued a 30-year loan at fixed rates of about 7.75%.

If you think you might be qualified for such a program and you live in one the states offering it, the best bet is probably to call your state legislator’s office and ask them who is running it in your state. If they don’t know they can find out.

For info on different mortgage terms, click here.

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