fixed mortgage expired to adjustable, help?

Question

as stated above, when this happened, my mortgage company increased my interest rate from 7.3 to a full 10%. Is this amount past legal, or should it have dropped to the current interest rate?

Answer 1

the rate that it could adjust to is posted in your note! read your note. You need to refi this note to a fixed rate. With that start rate you must have had some credit issues. Start the process today. I am a loan officer in TN only>

Answer 2

I would assume that it was an ARM, fixed for 5 years. Most conventional 5-yr ARMs have the ability to increase 5% on its first adjustment and than a 2% adjustment after that with a Ceiling of 5% over the start rate.

Answer 3

Yes, if you have a ARM(3 or 5 year), it is legal. Your best bet is try refinance it and get a better rate. If you don't want this to happen again, do a fixed (30 year, 40 year, 15 year) rate mortgage.
I'm with a big direct lender/mortgage broker doing business in 48 states, and because the huge volumn of business we do, we get better rate than smaller brokers. Contact me at [e-mail] or 408-476-0455 and I can help you. Jessica

Answer 4

If you'd like to refinance and get a lower fixed rate email me or call 877-LOAN-103. I work for a mortgage and we can help lower that rate and make it stay there. ;)

Answer 5

You had a short term fixed fee. there is no longer something unlawful approximately it. Take your observe to an criminal expert and have him clarify it to you. Then detect a good loan broking provider and refinance, yet have somebody help you with this next refinance.

Answer 6

Have a look here. A lot of good info on mortgages.

Answer 7

Read your contract. They can do whatever the contract allows. Specifically look for clauses that allow them to unhook the rate from prime based on payment history.