Posted on: 17th Mar, 2008 04:51 am
I have a question when we bought our house in the papers was a notice of disclosure which says our payments would be a certain amount for two years and then it would be a second amount for the remainder of the loan term. the first two years went fine and then bam we were hit with a payment that was increased by almost 200 a month and told well you have a variable rate it says so in the fine print. Is this legal or do they have to honor the notice of disclosure?j
Welcome graven,
I suppose the payment has increased by $200 a month. And then the lender says it's a variable rate. I think it is better if you check out from the loan doc as to exactly what type of loan is being offered to you.
You can also quote what is written there regarding the type of loan.
I suppose the payment has increased by $200 a month. And then the lender says it's a variable rate. I think it is better if you check out from the loan doc as to exactly what type of loan is being offered to you.
You can also quote what is written there regarding the type of loan.
Many ARM Adjustable Rate Mortgage home loans written over the past 5 year were written with 6/2/6 caps, meaning that at the first adjustment period (the very next month after the fixed rate introductory period on your loan ends), your ARM's adjustable mortgage rate may increase by as much as 6%. Sounds like your broker/loan officer did not give you an accurate truth in lending look at your note it should be able to tell you your caps and adjustment periods (how often) since your mortgage has recast like most Americans who took the exotice loans 2/28 3/27 5/25 interest only's etc. There are many knowledgeable lenders in this community that is more than capable of helping you lock into a fixed rate..
Good Luck! Executive Mortgage Advisor
Good Luck! Executive Mortgage Advisor
