No, the mortgage market hasn’t completely recovered. However, mortgage applications are on the rise again, and lenders are starting to take a few more chances. Some are starting to offer teaser rates again. These low interest rates make it possible for you to initially be approved for a loan, and then a few years down the road the rate resets, and you have a higher payment.

This isn’t just happening with new home mortgage loans; it is also becoming popular again with mortgage refinancing. You can refinance to a low, low interest rates for around five years, and then rate increases at that time. If you can’t refinance again, then you are in trouble as the rate resets and you pay a new, higher interest rate.

So, before you agree to such a loan, it is a good idea double check your finances. Make sure you can afford the mortgage payment amount for after the reset. It’s a nice thought that you will earn more money by then, but as many are finding out right now, that doesn’t always work out. So base your mortgage decisions, from buying a new home to getting a refinance, on what you can comfortably afford now.