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My ARM will readjust based on the "current Index", how do I find out what this number is?

My ARM will adjust for the first time in July, 09.  My interest rate will be based on the Federal Reserve Board's current index.  It will be 2.75% above the current index.  If I am correct, the index was 0.45 last week.  Is this correct?  Then my interest rate would be something like 3.2%??? I need to decide weather to refi (if I can), or just talk to the bank.  Have tried to sell, but is not an option now.  Should I call my bank?  Thanks
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December 28 2008 - Morgan Hill
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Check Here. Do your calculations and compare your fully indexed interest rate with current rates. 
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December 30 2008

That's correct and my advice is ride it and if you want to create equity base your payment on 5% and pay that the extra will reduce the principal balance and the payment and interest will be recalculated each month saving you money.
If I'm correct and please check your NOTE for sure that your max rate will be capped at 5% above the initial change in other words the highest your rate wll get while you are in this mortgage will be 8.2% -

Paying above the P&I will offset future rate adjustments.

Happy Holidays

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December 28 2008

Just call the number on your account statement and ask them.  You should have no problem.

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December 28 2008

Just call the number on your account statement and ask them.  You should have no problem.

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December 28 2008

Just call the number on your account statement and ask them.  You should have no problem.

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December 28 2008

Just call the number on your account statement and ask them.  You should have no problem.

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December 28 2008
The other real common index is the 1 year treasury.
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December 28 2008
Call you bank... BUT on your NOTE, the INDEX (usually the LIBOR for most ARMS) is the index of choice.  It will be spelled out on your NOTE... usually the first page.  If it is the 1 YR LIBOR like I would guess, that INDEX is a little over 2%... Add 2.75% Margin and you would be about 4.75% for the following year.  Your monthly statement may also have the INDEX used when it does adjsut.  I just have never heard of the index you mentioned.  Happy Holidays.
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December 28 2008
 
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