Posted on: 05th Oct, 2010 01:55 pm
I have a hybrid ARM loan which ended its fixed rate period in 2003. Since then, my variable interest rate went up over 3 points until about 2007, and has gone up and down a couple times since. My loan note is tied to something called the "weighted-average interest rate paid by 11th Federal Home Loan Bank District savings institutions for savings accounts" and I was wondering how I can find out what that is, and how my mortgage company uses it to calculate my interest rate.
I was trying to do this on my own, but I keep getting confusing information from different places and thought maybe this forum could help me figure this out. So, how does my bank use this "index," and how can I check to make sure they're getting my variable interest rate correct? Am I supposed to just trust them to get this right???
I was trying to do this on my own, but I keep getting confusing information from different places and thought maybe this forum could help me figure this out. So, how does my bank use this "index," and how can I check to make sure they're getting my variable interest rate correct? Am I supposed to just trust them to get this right???
Hi flanjerka,
Your ARM is tied to COFI (Cost of Funds Index) and any change in it will affect your interest rates and loan payments. To know more about it, check out the given page:
"http://www.fhlbsf.com/cofi/default.asp"
Thanks
Your ARM is tied to COFI (Cost of Funds Index) and any change in it will affect your interest rates and loan payments. To know more about it, check out the given page:
"http://www.fhlbsf.com/cofi/default.asp"
Thanks
I was searching around the internet with this same question. I found this post, but I also found something that might really help...
This is apparently a new site, it says they're launching Oct 13, 2010. It's "checkmyarmonline.com". They claim to do all the calculations and index stuff for you, for a low price ($19.95). I don't know how it works, but I might sign-up and see what it's all about. I guess $20 isn't too much to spend on this type of thing... "checkmyarmonline.com" also says you can update your ARM audits each month at no extra charge, so it looks like you can MANAGE your ARM loan through their site as it matures. They claim interest rate mistakes are in all kinds of arm loans and that a small 1% error could cost a homeowner hundreds of dollars a month.
I don't know how common interest rate errors are, but considering how much trouble the banks are in now for foreclosure problems, maybe this is something more homeowners with adjustable rate mortgages should think about.
[External links deactivated as per forum rules. Thanks.]
This is apparently a new site, it says they're launching Oct 13, 2010. It's "checkmyarmonline.com". They claim to do all the calculations and index stuff for you, for a low price ($19.95). I don't know how it works, but I might sign-up and see what it's all about. I guess $20 isn't too much to spend on this type of thing... "checkmyarmonline.com" also says you can update your ARM audits each month at no extra charge, so it looks like you can MANAGE your ARM loan through their site as it matures. They claim interest rate mistakes are in all kinds of arm loans and that a small 1% error could cost a homeowner hundreds of dollars a month.
I don't know how common interest rate errors are, but considering how much trouble the banks are in now for foreclosure problems, maybe this is something more homeowners with adjustable rate mortgages should think about.
[External links deactivated as per forum rules. Thanks.]
Hi, thanks for these links.
I visited "www.checkmyarmonline.com" and asked them how their online adjustable rate mortgage audit worked. They were very helpful and sent me a "promo code" to try their arm auditor out for FREE! That was a complete surprise, but I guess they want to generate some buzz for their service. I haven't gotten around to trying their online arm calculator yet, but I was interested to see that you can do this kinda thing online.
I visited "www.checkmyarmonline.com" and asked them how their online adjustable rate mortgage audit worked. They were very helpful and sent me a "promo code" to try their arm auditor out for FREE! That was a complete surprise, but I guess they want to generate some buzz for their service. I haven't gotten around to trying their online arm calculator yet, but I was interested to see that you can do this kinda thing online.
If you check the index that your arm is tied too you should be able to calculate the correct rate, you can also call your lender and get the details from them as well. There are things like margin that you may not know how to figure in, but doing it online should give you a rough idea anyway. Don't pay to figure this out!