Definition of "Payment Shock"

Phil Moody real estate agent
Phil Moody, Real Estate Agent Berkshire Hathaway HomeServices Florida Network Realty

A very large increase in the payment on an ARM that may surprise the borrower. The term is also used to refer to a large difference between the rent being paid by a first-time home buyer and the monthly housing expense on the purchased home.

Have a question or comment?
We're here to help.

 
 
 
*** Your email address will remain confidential.
 
 
 

 

Popular Mortgage Terms

Popular Mortgage Questions