Posted on: 23rd May, 2010 03:40 pm
how can I calculate the rate 4.75 start rate index 5.75 margin 2.75 2/2/6
What type of loan is one that has 5 yrs fixed and change to a 25 yrs fixed 5/25?
What type of loan is one that has 5 yrs fixed and change to a 25 yrs fixed 5/25?
If you have an adjustable rate mortgage, then your new rate would be the summation of your index rate and the margin. Thus, in your case, the new rate would be 5.75+2.75 = 8.5.
As far as your next question is concerned, 5/25 fixed would be a balloon mortgage.
As far as your next question is concerned, 5/25 fixed would be a balloon mortgage.