How an ARM recalculates? - Posted by Not2Brite

Posted by christopher w on July 24, 2007 at 07:56:31:

It applies only to the current balance.

How an ARM recalculates? - Posted by Not2Brite

Posted by Not2Brite on July 23, 2007 at 09:07:14:

Have a 3/1 ARM.

Orig prin was $100K.
Owe $75K.

ARM is adjusting in December.

Is the new rate calculated on the $100K orig? or the $75K?

Cain’t seem to get an answer.

Thank you for any help!

Re: How an ARM recalculates? - Posted by christopher w

Posted by christopher w on July 23, 2007 at 11:38:38:

The rate recalculates by adding the index (six month LIBOR, one month LIBOR, MTA, etc…)to your margin. This information can be found on your Adjustable Rate Rider which is part of your warranty deed. Hope this helps.

Re: How an ARM recalculates? - Posted by Not2Brite

Posted by Not2Brite on July 24, 2007 at 06:34:31:

I understand how the new rate is calculated.

But is it applied to the orig prin of $100K
OR
Is it applied to the current prin balance of $75K?

Thank you for helping with this.

N2B