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Reset of my ARM loan in Sept 2010

I got a 7/1 ARM jumbo mortgage back in 03. My rate at the time was 5.25 for the first 7 years. That is to go adjustable in Sept 2010. If I let it go an not refinance, what will my rate become in Sept? Higher or lower than 5.25? by JonShriver from Orange, California. Jan 9th 2010 Reply

Leo Harvey (LHARVEY)
#6 ranked lender in Pennsylvania - 149 contributions

The previous poster gave you good information but left out the fact that your loan may have a floor rate which is usually the start rate of the loan. This means that your rate can never go below the floor even if indexes fall as they ave over the last 2 years. this also should be clearly stated in your mortgage note.

Jan 12th 2010
Timothy Gray (insistontim)
#193 ranked lender in California - 15 contributions

Jon,Your interest rate at the time of adjustment will be the product of two items; the index and the margin assigned to your loan. Take a moment to review the index and margin assigned to your loan; both evident on your mortgage note. You can call your mortgage lender/servicer or look on your mortgage note if you have a copy. The margin is fixed, make a note of it.Then go on the internet and type in the name of the index and look for it's current price. Add the two numbers together for your rate where it to adjust today and then repeat that exercise in September of this year.The LIBOR (common index) is around 1% today and many popular Jumbo ARMS used a margin of 2.25%= 3.25% adjusted rate - lower than what you have now if it adjusted.Hope this helps.Let me know if you'd like to look at fixed or new ARM loan options.Regards,Timothy GrayExecutive Director of OperationsMortgage Alliance Group6151 Fairmount Ave. #213San Diego, CA 92120888 345-ALLIANCE (2554) x.2226Phone: 619 283-4000 x. 2226eFax: 619 And ALWAYS "Insist on Tim" when planning for your next mortgage! *NOTICE: information provided is time-sensitive material. Rates, programs, fees and points are subject to change without notice. If you are applying for an adjustable rate mortgage, payments and interest rates will change.Payments, interest rates, and loan balances are estimates only. Your amount may be different. This is not a loan commitment, nor is it a guarantee of any kind.

Jan 9th 2010
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