---

apr after 5 ARM period

Author	Message
	Add to del.icio.us Add to YahooMyWeb Add to Simpy Add to BlinkList
nrkuna Joined: 16 Feb 2011 Posts: 1 1.40 Dollars($)	Posted: Wed Feb 16, 2011 5:39 pm    Post subject: apr after 5 ARM period Like 0 Dislike 0 I have 5 year ARM ending in 1 june, 2011. My current apr is 6.5%. what will be my apr after 1 june, 2011.
brian1 Community Expert Joined: 14 Jun 2008 Posts: 448 Location: Northern California 15.61 Dollars($)	Posted: Wed Feb 16, 2011 6:39 pm    Post subject: Like 0 Dislike 0 You need to go in to your paperwork and find the adjustable note rider It will tell you How often the note can change - the index the note is attached to and the margin - It will also state the maximum it can adjust on the first adjustment and every adjustment after that - we need that info to answer your question B _________________ 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
tfaulhaber1 Community Expert Joined: 17 Dec 2009 Posts: 562 75.68 Dollars($)	Posted: Thu Feb 17, 2011 9:11 am    Post subject: Like 0 Dislike 0 The 5yr Arm usually has an adjustment caps of 2/2/5. This means that the first adjustment can go up or down two percent. Every year after that it can go up or down 2 % but, it can't exceed over 5% of the initial start rate. Your loan officer who originated the loan set you up with a margin (should be on your closing papers) and the loan is tied to either the LIBOR or the Treasury(which is the index). Adding the margin and the index will determine whether your rate will go up or down. _________________ Theo (Ted) Faulhaber 516-403-9116 516-634-4417 tfaulhaber (at) vanguardfunding.net
Guest	Posted: Thu Feb 17, 2011 1:57 pm    Post subject: Like 0 Dislike 0 If you 5-1 was IO for the first 5 years, could be your adjustment limits could be 5/2/5. Actually better for you assuming no major short term rate increase. Most likely your RATE will be going down and in that case a higher first adjustment cap would be better. It is unlikely that the APR given at application was 6.5%. More likely this is the initial note rate. You’ll need to check your rider for index and margin but my guess is that your rate for year 6 will be in the 3’s or mid 4’s depending what the first adjustment cap is.

Quick Reply
Your Name
Subject
Image Verification	Enter the code above here : Can't read the image? click here to refresh
Message body

All times are GMT - 7 Hours

Page 1 of 1

---

We have chosen to apply the Creative Commons Attribution License to all works we publish. This work is licensed under cc by 2.0