N********e
发帖数: 189 | 1 Adjustable rate mortgage (ARM) info
Interest rate cannot exceed 9.375%
Yearly adjustment cap 2.000%
First adjustment cap 5.000%
ARM index LIBOR
ARM margin 2.750%
1、假如今天是4.125%，那么7年后、第8年的rate最高可能是9.125%？
2、7年往后，无论LIBOR指数是多少，rate不能超过9.375%? 这个cap是不是已经考虑过margin了？否则再加上margin, life-time cap就变成12.125%了。 | s**m
发帖数: 1564 | 2 rate can not exceed 9.375% after margin is factored in.
过margin了？否则再加上margin, life-time cap就变成12.125%了。
【在 N********e 的大作中提到】
: Adjustable rate mortgage (ARM) info
: Interest rate cannot exceed 9.375%
: Yearly adjustment cap 2.000%
: First adjustment cap 5.000%
: ARM index LIBOR
: ARM margin 2.750%
: 1、假如今天是4.125%，那么7年后、第8年的rate最高可能是9.125%？
: 2、7年往后，无论LIBOR指数是多少，rate不能超过9.375%? 这个cap是不是已经考虑过margin了？否则再加上margin, life-time cap就变成12.125%了。
| m****a
发帖数: 1257 | 3 my understanding is:
yr8, max rate 5%
yr9, max rate 7% or yr8+2% if yr8 <5%
yr10, max rate 9% or yr9+2% if yr9 <7%
yr11, max rate is 9.375% or yr10+2%, if yr10<7.375%
过margin了？否则再加上margin, life-time cap就变成12.125%了。
【在 N********e 的大作中提到】
: Adjustable rate mortgage (ARM) info
: Interest rate cannot exceed 9.375%
: Yearly adjustment cap 2.000%
: First adjustment cap 5.000%
: ARM index LIBOR
: ARM margin 2.750%
: 1、假如今天是4.125%，那么7年后、第8年的rate最高可能是9.125%？
: 2、7年往后，无论LIBOR指数是多少，rate不能超过9.375%? 这个cap是不是已经考虑过margin了？否则再加上margin, life-time cap就变成12.125%了。
| s**m
发帖数: 1564 | 4 wrong
【在 m****a 的大作中提到】
: my understanding is:
: yr8, max rate 5%
: yr9, max rate 7% or yr8+2% if yr8 <5%
: yr10, max rate 9% or yr9+2% if yr9 <7%
: yr11, max rate is 9.375% or yr10+2%, if yr10<7.375%
:
: 过margin了？否则再加上margin, life-time cap就变成12.125%了。
| z****n
发帖数: 1514 | 5 wrong
【在 m****a 的大作中提到】
: my understanding is:
: yr8, max rate 5%
: yr9, max rate 7% or yr8+2% if yr8 <5%
: yr10, max rate 9% or yr9+2% if yr9 <7%
: yr11, max rate is 9.375% or yr10+2%, if yr10<7.375%
:
: 过margin了？否则再加上margin, life-time cap就变成12.125%了。
| m****a
发帖数: 1257 | 6 then what is the right calculation?
【在 z****n 的大作中提到】
: wrong
| s*****n
发帖数: 2174 | 7 应该是
1st-7th year: fixed 4.125%
8th year: LIBOR + 2.75%, but not exceeding 9.125%
9th and later: LIBOR + 2.75%, but not exceeding previous year rate + 2%,
also not exceeding 9.375%.
过margin了？否则再加上margin, life-time cap就变成12.125%了。
【在 N********e 的大作中提到】
: Adjustable rate mortgage (ARM) info
: Interest rate cannot exceed 9.375%
: Yearly adjustment cap 2.000%
: First adjustment cap 5.000%
: ARM index LIBOR
: ARM margin 2.750%
: 1、假如今天是4.125%，那么7年后、第8年的rate最高可能是9.125%？
: 2、7年往后，无论LIBOR指数是多少，rate不能超过9.375%? 这个cap是不是已经考虑过margin了？否则再加上margin, life-time cap就变成12.125%了。
| g********n
发帖数: 178 | 8 For ARM, the key is based on how many years your loan will be amortized. If
based on 30 years, then I would recommend you go for 15 years fixed, cause
the rate is same, the interest is almost same(correct me, if I am wrong). If
based on 15 years, then definitely go for it. But I checked two lenders,
they all told me, ARM on 15 years was just canceled several months ago. | s*****n
发帖数: 2174 | 9 Many people cannot afford mortgage that is amortized 15 years.
My understanding is that 30y amortized ARM has similar rate with 15y fixed
mortgage. If you pay the mortgage as if it is amortized 15 years (i.e. pay
extra principal every month than ARM required payments), there is not much
difference, at least at the beginning 5,7 years. But these two provides
different types of flexibility:
ARM has the flexibility not to pay that high monthly, but fixed rate
mortgage requires borrower to pay high.
【在 g********n 的大作中提到】
: For ARM, the key is based on how many years your loan will be amortized. If
: based on 30 years, then I would recommend you go for 15 years fixed, cause
: the rate is same, the interest is almost same(correct me, if I am wrong). If
: based on 15 years, then definitely go for it. But I checked two lenders,
: they all told me, ARM on 15 years was just canceled several months ago.
| g*****s
发帖数: 1288 | 10 >If : based on 30 years, then I would recommend you go for 15 years fixed,
cause
>: the rate is same, the interest is almost same(correct me, if I am wrong).
Wrong.
If
If
【在 g********n 的大作中提到】
: For ARM, the key is based on how many years your loan will be amortized. If
: based on 30 years, then I would recommend you go for 15 years fixed, cause
: the rate is same, the interest is almost same(correct me, if I am wrong). If
: based on 15 years, then definitely go for it. But I checked two lenders,
: they all told me, ARM on 15 years was just canceled several months ago.
| | | m*****i
发帖数: 1829 | 11 7/1 ARM for 4.125% is really high ya. I got quote for 5/1ARM for 3.5% and 10
year fixed for 3.875% two days ago.
If you go with 7/1ARM, you are assuming you will sell house because of
moving or upgrade your home. So no need to worry what the rate will be after
7 years. If you are not sure about selling home in 7 years, you should go
with 15 fixed or 10 fixed.
just my 0.001 cent :)
过margin了？否则再加上margin, life-time cap就变成12.125%了。
【在 N********e 的大作中提到】
: Adjustable rate mortgage (ARM) info
: Interest rate cannot exceed 9.375%
: Yearly adjustment cap 2.000%
: First adjustment cap 5.000%
: ARM index LIBOR
: ARM margin 2.750%
: 1、假如今天是4.125%，那么7年后、第8年的rate最高可能是9.125%？
: 2、7年往后，无论LIBOR指数是多少，rate不能超过9.375%? 这个cap是不是已经考虑过margin了？否则再加上margin, life-time cap就变成12.125%了。
| s******8
发帖数: 4192 | 12 答案正确！
2.75%的margin有点高，最好是2.25，至少2.5.
4.125%也蛮高，除非是jumbo。
【在 s*****n 的大作中提到】
: 应该是
: 1st-7th year: fixed 4.125%
: 8th year: LIBOR + 2.75%, but not exceeding 9.125%
: 9th and later: LIBOR + 2.75%, but not exceeding previous year rate + 2%,
: also not exceeding 9.375%.
:
: 过margin了？否则再加上margin, life-time cap就变成12.125%了。
| s**m
发帖数: 1564 | 13 if rate is same, why choose 15 over 30? with 15, monthly pay is higher and
enforced. with 30, monthly pay is lower. you can pay less if your budget is
tight, or more if you have extra cash - if you pay the amount calculated
with 15 year term, it is identical to 15 year terms with the flexibility to
pay less if needed.
but ususally 15 year term rate is lower than 30 year term rate
If
If
【在 g********n 的大作中提到】
: For ARM, the key is based on how many years your loan will be amortized. If
: based on 30 years, then I would recommend you go for 15 years fixed, cause
: the rate is same, the interest is almost same(correct me, if I am wrong). If
: based on 15 years, then definitely go for it. But I checked two lenders,
: they all told me, ARM on 15 years was just canceled several months ago.
| s**m
发帖数: 1564 | 14 7/1 arm rate is often close to 15 fixed rate
is your 5/1 arm 3.5% a no cost rate?
10
after
【在 m*****i 的大作中提到】
: 7/1 ARM for 4.125% is really high ya. I got quote for 5/1ARM for 3.5% and 10
: year fixed for 3.875% two days ago.
: If you go with 7/1ARM, you are assuming you will sell house because of
: moving or upgrade your home. So no need to worry what the rate will be after
: 7 years. If you are not sure about selling home in 7 years, you should go
: with 15 fixed or 10 fixed.
: just my 0.001 cent :)
:
: 过margin了？否则再加上margin, life-time cap就变成12.125%了。
| s**m
发帖数: 1564 | 15 one additional point:
year adjustment cap is +/-2%
when libor goes down, your rate might goes down too (though not necessarily)
, new rate is bounded within previous year rate +/- 2%
【在 s*****n 的大作中提到】
: 应该是
: 1st-7th year: fixed 4.125%
: 8th year: LIBOR + 2.75%, but not exceeding 9.125%
: 9th and later: LIBOR + 2.75%, but not exceeding previous year rate + 2%,
: also not exceeding 9.375%.
:
: 过margin了？否则再加上margin, life-time cap就变成12.125%了。
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