D****V
发帖数: 461 | 1 lets say my 5 year ARM expires today. what interest rate I would expect to
pay for the rest of year?
I understand it will be adjustable rate based on major index. how exactly to
calculate it?
thanks |
h***b
发帖数: 1233 | 2 adjustment is done annually per index that was agreed upon. many times it's
the 1-yr LIBOR. there's also an agreed upon "margin" that goes on top.
margin is fixed but index varies. margin is usually ~2.25% (verify your
Note). say LIBOR is at 0.78% then your adj'd ARM rate starting the 6th yr
is 2.25 + 0.78 or 3+%.
1st adj usually carries a cap of 5%, same cap also applies throughout the 30
-yr term. 2nd and subsequent adj usually carry a 2% cap. so your worst
scenario in terms of mtg rate is 5% higher than your initial rate--the fixed
rate during the 1st 5 yrs... not bad huh? :p
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http://www.mitbbs.com/club_bbsdoc/charles.html
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to
【在 D****V 的大作中提到】
: lets say my 5 year ARM expires today. what interest rate I would expect to
: pay for the rest of year?
: I understand it will be adjustable rate based on major index. how exactly to
: calculate it?
: thanks
|
D****V
发帖数: 461 | 3 thanks so much. you are awsome !
I need to look back my Note. the reason I ask is that my ARM term expires
next year. I want to get help decide whether I just let it carry on, or I do
refinance before that. 3% is not bad if it is still true next year. any
professional advice? :)
's
30
fixed
【在 h***b 的大作中提到】
: adjustment is done annually per index that was agreed upon. many times it's
: the 1-yr LIBOR. there's also an agreed upon "margin" that goes on top.
: margin is fixed but index varies. margin is usually ~2.25% (verify your
: Note). say LIBOR is at 0.78% then your adj'd ARM rate starting the 6th yr
: is 2.25 + 0.78 or 3+%.
: 1st adj usually carries a cap of 5%, same cap also applies throughout the 30
: -yr term. 2nd and subsequent adj usually carry a 2% cap. so your worst
: scenario in terms of mtg rate is 5% higher than your initial rate--the fixed
: rate during the 1st 5 yrs... not bad huh? :p
: 欢迎访问＂言之有屋＂Irvine Mortgage & RE 俱乐部和我的博客
|
o*********l
发帖数: 1807 | 4 FED just announced no rate hike until middle of 2013, I think you are safe
for a while. |
o*********l
发帖数: 1807 | 5 unless US run into another liquidity crisis,usually the spread for Constant
Maturity Treasury and LIBOR is marginal. |
h***b
发帖数: 1233 | 6 you're asking me a tillion dollar question!! :p
to predict where rates go is more difficult than weather forecast...
you know the worst case scenario after 5 yrs, just plan accordingly while
get the best you can now
do
【在 D****V 的大作中提到】
: thanks so much. you are awsome !
: I need to look back my Note. the reason I ask is that my ARM term expires
: next year. I want to get help decide whether I just let it carry on, or I do
: refinance before that. 3% is not bad if it is still true next year. any
: professional advice? :)
:
: 's
: 30
: fixed
|
