Posted on: 01st Jul, 2008 08:28 am
I am paying on an interest only loan. It will change in 2011 on the Libor index. It is detailed as a 30 yr conventional with a PMI ARM. What can I expect in 2011? I know what an ARM is and I know what PMI is, but what is a PMI ARM?
Thanks!
Thanks!
I have never heard of PMI payments fluctuating. It may be a new product if you just got that mortgage.
More than likely it is stating that you're paying PMI, and have an ARM loan.
More than likely it is stating that you're paying PMI, and have an ARM loan.
Something missing there
It sounds like you have a 5 or 10 year arm and it is a a 30 year amortization. Meaning your rate will start adjusting at the year 2011 and will adjust based on your margin plus the Libor index. Not seeing your paperwork it is hard to say. You need to dig out your loan papers and read the note to know for sure.
It should say what the margin is (the fixed part added onto the index) and the index. To get the new rate you add the two together.
Good Luck
Brian
It sounds like you have a 5 or 10 year arm and it is a a 30 year amortization. Meaning your rate will start adjusting at the year 2011 and will adjust based on your margin plus the Libor index. Not seeing your paperwork it is hard to say. You need to dig out your loan papers and read the note to know for sure.
It should say what the margin is (the fixed part added onto the index) and the index. To get the new rate you add the two together.
Good Luck
Brian
