Profile picture for user7499260

Mortgage is changing from fixed to adjustable in June of next year. Broker says mortgage will NOT in

Mortgage is changing from fixed to adjustable in June of next year. Broker says mortgage will NOT increase due to the market condition and the way loan was set up. Is there a truth to this and if there was a similar situation? Too good to be true.
  • July 17 2012 - US
  • 0
    0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.

 
 

Answers (5)

I agree with all prior comments and suggest you get a Different mortgage professional to work with.
Also, I would suggest you get a Fixed Rate NOW, since Rates are so low.
Just my 2 cents.
- Al
  • July 19 2012
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Your broker is remarkable as most of us can't predict what rates will be next week............... Seriously, no mortgage professional should ever give that kind of advice unless they are guarantying their statement. In actuality  there is more reason to think ARM adjustments will be higher next yr than at today's historically low index #s.
  • July 17 2012
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Your note will give you the terms of your loan.  You can idea by calculating what the rate would adjust to now by adding the index plus the margin.  However it does not adjust for a year and no one knows what rates (in turn your base index rate) will be in June of 2013. 

  • July 17 2012
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for daveskow

whats present rate ?  margin?  index? caps ?

all of these come into play
no way to know what these  variables will be June 2013 ...

loan rate  / payment  will likely adjust  every 12 months from here on out

  • July 17 2012
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

I need one of those crystal balls.

If you were adjusting right now, the rate would adjust to somewhere around 2.75% to 3.25% depending on your index and margin and assuming this is not a sub-prime loan.

next year? anyone's guess.
  • July 17 2012
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.