Labor Union Blog

Many homeowners have adjustable rate mortgages (ARMs)—but nearly half who have them admit they do not know how their ARMs adjust or reset, and nearly three-quarters do not know how much their monthly mortgage payments will increase when they do, a new national survey reveals.

The survey, conducted Sept. 13–25 by Peter D. Hart Research Associates for the AFL-CIO, finds that ARM holders are generally not concerned about mortgage payments until their rates reset. Then anxiety sets in as they realize their payments have risen substantially. The use of ARMs for home financing has grown dramatically over the past few years and particularly among higher-risk subprime borrowers.

Union Privilege, provider of benefits for union families, announced the results of the survey today, while in Cleveland, AFL-CIO President John Sweeney and Union Privilege President Leslie Tolf announced the launch of the Union Plus Save My Home Hotline.