Mortgage question: anyone's 5 yr ARM reset recently?

[gk90]

I can't find my loan documentation anywhere and won't have a chance to call the bank until tomorrow afternoon but I'm wondering about ARMs and how they're performing thse days.

We're coming up on the end of the 5th year of our mortgage (5/1 ARM) and I'm wondering: our rate for the 1st 5 years was 5%, but with interest rates so much lower these days is it possible that the adjusted rate will be lower than 5%? Has this happened to anyone with an ARM recently?

Our plan was to sell our current house and move when we were 4 or 5 years into this mortgage (last year or this year) which was one reason that a refinance to a lower rate didn't seem worthwhile. However we didn't find any houses that made us want to move. Who knows, maybe next year.

 

[a1tinkfans]

no answer here, but hope this works out for you....find those papers....

 

[punkin]

Do you know your index and margin? If you do, you can pretty much figure out the reset yourself. For example, my ARM sets off the LIBOR and the margin is 2.25%. I can look up the LIBOR in the Wall Street Journal (and other places, I suppose) and add the two numbers up.

Was the 5% a teaser rate? What are your yearly and lifetime caps?

 

[GrnMtnMan]

is it possible that the adjusted rate will be lower than 5%?

Yes, it is possible....and likely unless you got a teaser rate. Rates are a good deal lower now than they were 5 years ago. You just need to find out from the original documents to see what you agreed to.