Posted on: 11th Apr, 2010 12:58 pm
can you tell me what do the numbers mean and when dose it change
I copyd and pasted the info from mortgage statement the intrest rate
is 3.063 what do the dates mean is that when it will adjust
and what are the chancesn of it going sky high
originaly my loan was 30 years I thtoa fixed for 30 years thay neglected to tell me it will adjust in 5 years I have been lucky for the past two years but I don't know what will be this year
thank you
Loan type. Adjustable Rate Loan
ARM margin. 2.6%
ARM index rate. 0.463%
ARM index name. MONTHLY AVG OF 1 YR US TREASUR
Next interest rate change date 08/01/2010
Next payment change date 05/01/2010
I copyd and pasted the info from mortgage statement the intrest rate
is 3.063 what do the dates mean is that when it will adjust
and what are the chancesn of it going sky high
originaly my loan was 30 years I thtoa fixed for 30 years thay neglected to tell me it will adjust in 5 years I have been lucky for the past two years but I don't know what will be this year
thank you
Loan type. Adjustable Rate Loan
ARM margin. 2.6%
ARM index rate. 0.463%
ARM index name. MONTHLY AVG OF 1 YR US TREASUR
Next interest rate change date 08/01/2010
Next payment change date 05/01/2010
Hi maria,
As your loan has an adjustable rate, the interest rates will keep on adjusting on a regular interval depending upon the market. Arm margin is the fixed percentage rate which is added to an index value to determine the fully indexed interest rate of an adjustable rate mortgage. The margin is constant throughout the life of the mortgage. For example, your present interest rate is 3.063% and your ARM margin is 2.6%, then the fully indexed interest rate would be 5.663%. Your interest rate will change on August 1st, 2010.
You should note that in most cases, the lenders tie ARM interest rates changes to the changes in the index rate. Lenders base ARM rates on a variety of indices such as one-, three-, or five-year Treasury securities. Apart from these, another common index is the national or regional average cost of funds to savings and loan associations.
As your loan has an adjustable rate, the interest rates will keep on adjusting on a regular interval depending upon the market. Arm margin is the fixed percentage rate which is added to an index value to determine the fully indexed interest rate of an adjustable rate mortgage. The margin is constant throughout the life of the mortgage. For example, your present interest rate is 3.063% and your ARM margin is 2.6%, then the fully indexed interest rate would be 5.663%. Your interest rate will change on August 1st, 2010.
You should note that in most cases, the lenders tie ARM interest rates changes to the changes in the index rate. Lenders base ARM rates on a variety of indices such as one-, three-, or five-year Treasury securities. Apart from these, another common index is the national or regional average cost of funds to savings and loan associations.