Posted on: 27th Oct, 2009 06:47 pm
I have a 3-year ARM with Wells Fargo that is supposed to reset on 11/14/09. I have not gotten notice from WF about a new interest rate. Is it possible that the ARM will not be reset because the interest rate might be lower than the initial rate? Loan promissory note wording says it "may" reset in 3 years. Would they be required to reset? Has anyone else encountered this? They must notify at least 25 days out per the promissory note.
Hi jmt!
Welcome to forums!
If it's mentioned in your mortgage docs that your loan will reset, then there are high chances that the lender will change your interest rate. In my opinion, you should contact your lender and check out whether or not they would be resetting the interest rates for you.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
If it's mentioned in your mortgage docs that your loan will reset, then there are high chances that the lender will change your interest rate. In my opinion, you should contact your lender and check out whether or not they would be resetting the interest rates for you.
Feel free to ask if you've further queries.
Sussane
they won't avoid changing your rate due to increases. their timing may simply be off in this case. there ought to be no reason for your arm to not reset, and you may well see a decrease.
It appears from my calculation that it should actually decrease, but the promissory note says they must notify me no less than 25 days in advance and I have heard nothing. The Prom. Note actually states that the rate "may" change on 11/14/09. I didn't know if anyone had heard of an ARM not resetting on the first reset date. Thanks for your help!
"may change" is fully appropriate. if conditions at the time of the change were identical to those that were in place at the time the loan was made, then no change would happen. you'd simply continue with what you've got. a lender would be violating truth in lending statutes to state that the rate "will change" only to find out that it would be remaining the same.
timing is sometimes off...i don't know how to excuse that or provide any explanation for it. it happens, though.
timing is sometimes off...i don't know how to excuse that or provide any explanation for it. it happens, though.
Call servicing 800.288.3212 just keep pressing "0" until you get a person on the phone and they can answer you question quickly. If you don't have your loan number they can look you up with the last digits of your social security #.