Well they were pretty helpful, huh? When adjustable rate loans adjust, there is a predetermined formula showing how the adjustment is calculated. That is all contained in the mortgage "note" that you should have received at closing. The two key components in the equation are referred to as the "Index" and the "margin." In your case, it sounds like the index is the 6-month LIBOR, which is an acronym for "London InterBank Offered Rate" It's a very common index used in the financial community and can be easily found online. To figure out what your new rate will be, you need to take the margin (6 month LIBOR) and add your margin to it. The resulting sum is your new rate, with a few caveats (see below). Currently, 6-month LIBOR is around 0.79%. So if your margin was 4.00, then your new rate would be 0.79+4.00 = 4.79 rounded up to the nearest 1/8 percent, or 4.875%.CAVEAT - In reality, most mortgage notes specify "floor" and "ceiling" rates, as well as limit the amount your loan can change on any given adjustment. Plus, margins can vary greatly. So to get a answer to your question, you really need to dig out the copy of your mortgage note. You can request a new one from Bank of America if you cannot find it. When you have a copy of your mortgage note, if you would fax it to me at 612-435-9739, I'd be happy to walk you through exactly how your rate can adjust. You can also call me at 952-426-6215.Scott

Libor, which stands for "London InterBank Offered Rate," is ultimately an adjustable mortgage rate. Libor Loan interest rates are calculated by using the current interest rate in the country. Libor Loans are often compared to the United States' 1-Year Treasury Security Index. What differs, however, is Libor offers different term periods. You can choose from a 10 year loan that is quoted for 1, 3, 6 and 12 month periods

This week 6-mos Libor is .79. But your current rate will still be around = 0.94 + the margin (common margin is 2.75%). So your rate should be 0.94+2.75=3.69. Most adjustable loans also have the floor rate so they can only go to a certain amount. For this particular example your rate could just be 4% if the floor rate is 4%. You should check your mortgage note, especially the Rider pages, in your original document that you signed at escrow. If you can't find your original one you can get it from BoA or you can also look it up online at the county recording office website. My recommendation is to check to see if you are qualify with the Obama's Mortgage Relief programs so that you can refinance to a 30 year fixed mortgage so you can have better sleep at night. To check to see if either Fannie Mae or Freddie Mac hold your mortgage you can try the links below:http://loanlookup.fanniemae.com/loanlookup/https://ww3.freddiemac.com/corporate/You would be supprise to see that you might still be qualified for a refinance even your house value has gone down a lot. Let me know if you need any help. My email is lvuong@soundmtg.com