Rates are still pretty low compared to historical rates, such as the times during the 80′s. Back then, mortgage rates were comparable to the rates you are probably getting on your credit card. Ouch!
Right now, it’s more important for some than others to get out of a mortgage that is costly to you pocket book OR will cost you much more than planned.  This could happen with an exotic mortgage.  You ask yourself, what’s an exotic mortgage and why do I need to be worried if I have one?
Exotic mortgages are classified as being higher risk loans, considered to be non-traditional compared to the ‘norm’ 30 year fixed loan. Exotic mortgages could be risky, if not managed properly.
There has been an increase of EPDs (early payment defaults – meaning payment issues within a couple months of getting the loan), delinquencies and foreclosures in the past few months. Data has shown that most of these issues are arising from these exotic mortgages.
Most of these adjustable rate loans are planning to reset in the next couple years, which could mean payment shock for a large percentage of borrowers holding these loans. A lot of these monthly mortgage payments may double or triple in amount due. Unless you have this type of cash reserve, you may be in trouble. It may be smart to research a lender that can get you into a fixed loan, that way you can have a stabilized mortgage payment and can sleep better at night!