---

How will Interest Only 6-Month LIBOR adjust?

Author	Message
	Add to del.icio.us Add to YahooMyWeb Add to Simpy Add to BlinkList
Guest	Posted: Fri Apr 08, 2011 4:04 pm    Post subject: How will Interest Only 6-Month LIBOR adjust? Like 0 Dislike 0 Hello, I have a mortgage that (auto company name) purchased from another lender. It is an Interest Only loan that resets after five years (June 2011) to the 6-month LIBOR and adjusts every six months. My original paperwork states the reset with include P&I, but I spoke with the lender and the new payment amounts to continued IO. Have no idea why, but a loan modification company informed me and other online research shows that the lender is leaving the loan at IO for 10 years. It's more that $450K. Not complaining, just trying to figure out how this happened?
adonis Joined: 22 Oct 2005 Posts: 10569 Location: ALASKA 1090.22 Dollars($)	Posted: Fri Apr 08, 2011 8:22 pm    Post subject: Like 0 Dislike 0 Welcome Guest, This is something which you need to clarify with your lender. Your lender will be able to let you know why the loan has still remained an IO. Nevertheless, if you refinance it into a normal loan, then I think your problem will get resolved. _________________ Procrastination is the enemy of your financial success
Justin1064 Guest	Posted: Sat Apr 09, 2011 11:08 am    Post subject: Thank You Like 0 Dislike 0 Thanks Adonis. I will confirm with lender. Unfortunately deeply underwater due to area short sales.
jameshogg Joined: 20 Dec 2005 Posts: 10477 Location: Nevada 990.06 Dollars($)	Posted: Sun Apr 10, 2011 10:51 pm    Post subject: Like 0 Dislike 0 Hi Justin, Do keep us posted about what your lender had said in this matter. Thanks
jveenstra Community Expert Joined: 10 Nov 2008 Posts: 1310 Location: River Edge, New Jersey 274.62 Dollars($)	Posted: Mon Apr 11, 2011 2:50 pm    Post subject: LIBOR ARM Like 0 Dislike 0 The terms of adjustment are stated in the orginal NOTE. You should have gotten a copy at the closing. The terms should not chanmge if the servicing of the loan is sold from one servicer to another as the NOTE itself never changes. Some ARMs are interest only for ten years even though the rate starts adjusting earlier. All you can do is ask the sevicer or read the NOTE. _________________ John Veenstra, Sr Mortgage Consultant Approved Funding Corp Licensed NJ NY CT PA 201-833-0123x278

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