When Will Your ARM Reset?

If you have an adjustable rate mortgage (ARM) you should know when your interest rate will increase and by how much. Contact your lender and ask. Most lenders will send a notice 6 months prior to the rate’s reset. The indexing margin that will be used for the reset is stated in your loan’s documentation. Given the date and index, you should be able to determine your approximate increase. A good source of information about the different ARM indexes is provided by HSHÂ® Associates, Financial Publishers. It’s their ARMIndexes.com site. Another source of index information is the RateWatch page on Bankrate.com at http://www.bankrate.com/brm/ratehm.asp

Loan adjustments can significantly increase your monthly mortgage payment and they should NOT be allowed to surprise you. Contact your lender for the date, look at your loans docs for the index, get the index data and calculate the approximate change in your monthly payment.

This entry was posted on Thursday, August 31st, 2006 at 5:32 am and is filed under Financial Tips, Information. You can follow any responses to this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback from your own site.