LoveToKnow Mortgage:AllComments

Comments

Frank, your adjustable rate mortgage is based on an index, but you'll need to find out which index it is based on in order to see if there is indeed any correlation between your mortgage interest rates and the Fed's rate. For example, if your ARM is based on the LIBOR Index you may experience an increase even though the Federal rates are dropping. Take a look at your loan paperwork, or contact a WaMu representative for clarification.

-- Contributed by: Tamsen Butler

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I have a arm with wamu and they are going up on my rates. can you tell me why this is happening when the gov is dorpping the rates?

-- Contributed by: frank

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Jason, thank you for the article suggestion. You are certainly correct that mortgage interest rates and loan terms are constantly changing, especially with regard to ARMs.

-- Contributed by: Tamsen Butler

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The inability to find actual loan terms - 2.5% above 1 year treasuries after 5 years with a maximum 2% per year adjustment and a 5% lifetime cap, for example, or 1.5% above 1 year LIBOR etc - is the single most frustrating thing about ARMs. I know all about how they work, what I need is actual information about actual current typical terms. Not an intro 5.65% rate quote, not a long winded explanation that the payment changes, but the actual formulas currently typical in the market, not five years ago, but today.

-- Contributed by: Jason Cawley
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