Have a ARM - What are current Laws

anthonytodd24 · Joined: 16 Jan 2008 Posts: 1 1.36 Dollars($)

Now have a current interest rate of 7.15%. Note reads can increase to 10.15%. Based on 6mos LIBOR in February. With all that Congress and the President are doing about these type of loans. Can they go up that much now? Or has a law been passed that they can't go up that much.
I though there were laws being passed that were not going to let that happen.
I'm in Texas

Guest 0.10 Dollars($)

Hi,

I don't think there is any law yet to prevent the ARM to go up but you may refinance the ARM to a fixed rate mortgage to lower the interest rate and you may do this even if you default in making the payments after the adjustment of the ARM.

Niicss · Joined: 03 Oct 2005 Posts: 662 94.17 Dollars($)

There is no such law to stop the arm rates to go up.

But the recent laws have made it flexible for homeowners to qualify for refinance even if there is a default in making the mortgage payments after the reset of the arm.

This will be helpful for the homeowners to avoid foreclosure and also lower down the interest rate.

You may look here at http://www.mortgagefit.com/tennessee/newlaw-variablerate.html for further information on this.

You may talk to your lender and check whether you may do a refinance to lower the interest rate.

ckalvesmaki · Posted: Thu Jan 17, 2008 7:11 am Post subject:

Hi Anthony,

The government can't "force" lenders to retroactively change a contract. So it is being done on a voluntary basis......What is the value of your house? How much do you owe on it? What are your credit scores? Have you considered a refi?

lisascherzer · Joined: 04 Jan 2008 Posts: 575 66.11 Dollars($)

Hi anthonytodd24,

I would suggest looking into a refinance. Right now fixed rates are 5.50% on a 30 year mortgage. The timing is perfect with rates being low, so take advantage of it.

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