Posted on: 16th Nov, 2009 08:17 pm
I bought a unit in 2005 with a 5 Year ARM interest-only mortgage with a rate of 5.25%. I was paying just the interest this entire time and it just reset this month. For some reason, it auto-reset to a 30 year JUMBO loan and I am paying a higher rate.
My questions are:
Why did it reset to a jumbo loan when the mortgage amount is only $209,500?
Does anyone have any advice or options for me to refi?
I assume a lot has to do the current property value. It is down around 18%.
My questions are:
Why did it reset to a jumbo loan when the mortgage amount is only $209,500?
Does anyone have any advice or options for me to refi?
I assume a lot has to do the current property value. It is down around 18%.
My required payment right now is $568.65 a month, interest only
It will be 5 years in Sept /Nov of this year
I have been paying this interest only. The amount of course has changed because the note started at $405,000 and now is $105,000
My loan says (at the top) Interest Only Adjustable Rate Note (one year LIBOR Index ) Rate Caps -10 year Interest Only period The initial fixed interest rate I am to pay will change to an adjustable interest rate on the first day of October 2011
It says the rate change is every 12 months
Now as i answer your questions and look at this more I see too, that it looks like the payments continue as" interest only" accept that they now begin to changed every 12 months with the use of the Index
Does that square with what you see from my info?
Thanks so much
It will be 5 years in Sept /Nov of this year
I have been paying this interest only. The amount of course has changed because the note started at $405,000 and now is $105,000
My loan says (at the top) Interest Only Adjustable Rate Note (one year LIBOR Index ) Rate Caps -10 year Interest Only period The initial fixed interest rate I am to pay will change to an adjustable interest rate on the first day of October 2011
It says the rate change is every 12 months
Now as i answer your questions and look at this more I see too, that it looks like the payments continue as" interest only" accept that they now begin to changed every 12 months with the use of the Index
Does that square with what you see from my info?
Thanks so much
Haven't heard back the one last time I finally gathered the right amount of info ?
It sounds like the rate and payment are adjusting at the end of fifth year, but, even though adjustting, stays at interest only for another five years.
Payment of interest only should be about $310 a month. It may bhe a little higher if the index rises between now and then.
Payment of interest only should be about $310 a month. It may bhe a little higher if the index rises between now and then.
Thanks so much John you've been very kind to continue to work with me I appreciate.
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