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Want to gage my adjustable rate once my loan is reset in Oct 2011

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markcrispo Joined: 23 Feb 2011 Posts: 1 1.31 Dollars($)	Posted: Wed Feb 23, 2011 9:18 am    Post subject: Want to gage my adjustable rate once my loan is reset in Oct Like 0 Dislike 0 Currently I have a 30 year home loan adj rate at 7.625 % with a 5/1 year arm. My rate is to be reset in Oct 2011. Being that i am upside down on my house and cannot refi i would like to estimate what my loan will be based on current market trends with the libor index if my rate will decrease/increase and aprox amount of how much. Not sure what to expect. Margin for my mortgage company is 2% and they can only adjust once a year.
brian1 Community Expert Joined: 14 Jun 2008 Posts: 448 Location: Northern California 15.61 Dollars($)	Posted: Wed Feb 23, 2011 2:18 pm    Post subject: Like 0 Dislike 0 according to Bank Rate the Libor 12 month index is currently at .79% That added with your margin of 2% would put you at 2.79% - but of course they are not going to let you have that rate right away. In your adjustable rate rider should be a statement about the max it can adjust. Most are 2% on the first adjustment and 1% there after - so if you are 7.625% it will go down to 5.625% - Don't forget to add in principal if you are currently paying interest only - Also if adjusting from interest only to fully amortized the amortization schedule will be over the remaining 25 years - Hope this helps Brian _________________ Licensed Broker 50 states http://www.aimwithfocus.com Live Chat available Need quick advise email or PM Glad to help Pre-approvals www.applyonlinesecure.com

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