Posted on: 12th Jun, 2007 04:04 pm
husband and i have an arm.. we had plans of refinancing before the rate was going to adjust..bt we kind of got into financial trouble as husband unexpectdly went unemployed and ill..nw we are trying to caught on thinhs and are not positioned well to refinance..did like to know what happens at time of adjustment? will they look into out credit, credit is not good so to say...rate would adjust in next few months...real thing is that myself not sure about this adjustment and needed some help on how it will work...
Hi Eather,
Rate will adjust to be the index plus the margin subject to increase cap your loan has. You need to tell us about your present rate, the index and margin your loan has and what are the rate adjustment caps on it. Other thing is that at the time of rate adjustment your credit will not be checked.
Please provide us these details and we will be able to tell you what you can expect your rate to be after the adjustment.
Miller
Rate will adjust to be the index plus the margin subject to increase cap your loan has. You need to tell us about your present rate, the index and margin your loan has and what are the rate adjustment caps on it. Other thing is that at the time of rate adjustment your credit will not be checked.
Please provide us these details and we will be able to tell you what you can expect your rate to be after the adjustment.
Miller
It would be really helpful for you if you can go through this page to know how arms work and how the rate adjusts on them: http://www.mortgagefit.com/arm-basics.html
Thanks
Blue
Thanks
Blue
If you retained the documents when you closed your last mortgage, the answer to all of your questions would be in the disclosures you signed.
As another poster has indicated, your new rate will based upon the sum total of INDEX (most likely LIBOR) + margin (varies).
A 2% increase in rates after adjustment is not unheard of or out of the norm...
Regards,
Scott Miller
As another poster has indicated, your new rate will based upon the sum total of INDEX (most likely LIBOR) + margin (varies).
A 2% increase in rates after adjustment is not unheard of or out of the norm...
Regards,
Scott Miller
Check how much the rate would be after the adjustment and compare it with the rate offers on a refinance to decide if you should go with a refinance or let the rate adjust on this present mortgage.
Many Brokers have loan programs suitable to help you pull through all of this.. Arms adjust accordingly to current market..
We are here to help...
Frank
[Link deleted as per forum rules. Thanks.]
We are here to help...
Frank
[Link deleted as per forum rules. Thanks.]