According to my mortgage papers, I can't no pay more less than 7.85% or more than 13% in the life of my loan. Starting on Octobre of this year is going to go up, however I want to know if is going to go all the way to 13% or start less than that?
2007-04-21 16:34:28 · 3 answers · asked by ism 2 in Business & Finance ➔ Renting & Real Estate
It is obvious your common sense is on the same level as your spelling. You should have never accepted such a loan to begin with. Anyway loans have a initial increase and a lifetime cap. Have someone with an education read you your loan documents.
2007-04-21 16:51:00 · answer #1 · answered by John S 4 · 2⤊ 3⤋
Probably not.
Look at the Promissory Note, probably paragraph 4. It will state the limit the interest can change each time. Most of them I've seen are limited to 3% the first change, and 1% up or down each change after.
That doesn't mean it will go up that much, that's just the limit.
Oh, and the Mortgage may have an "Adjustable Rate Rider" that describes the same terms. There should not be a difference between the rider and the note, unless someone made a mistake.
2007-04-21 16:39:59 · answer #2 · answered by open4one 7 · 1⤊ 0⤋
Most ARM's have a maximum that they can increase in a single year. The one I had was a max increase of 1/2%. Check the terms of your mortgage to see if this applies in your case. It's unlikely that it will go all the way to the max after just one year, unless they are trying to make you default so they can foreclose on you.
2007-04-21 16:39:49 · answer #3 · answered by Brian G 6 · 0⤊ 0⤋