Posted on: 08th Mar, 2010 08:17 am
Hi there,
When an 5 year arm expires, what exactly happens? Let's say someone takes out a 5 year arm. After the 5 years of interest only payments, I assume you will start to pay principle and interest over 25 years, am I correct?
Thanks
When an 5 year arm expires, what exactly happens? Let's say someone takes out a 5 year arm. After the 5 years of interest only payments, I assume you will start to pay principle and interest over 25 years, am I correct?
Thanks
that makes sense, mk. your original loan documents would contain all the data relevant to the 5th anniversary and what transpires at that time. clearly, you'll have an adjustment due at that time, and that will determine what your payments are going to be, and they should be amortized over the 25 year remaining term of your mortgage.