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Posted by Clocker on November 30, 2006, 5:01 am
I'm in 3.75% 3-year ARM. It's due to adjust up in May a max of 2%.
Whatever the adjustment is, the payment won't be a problem. I'm just
curious, is the new payment based on the remaining balance of the loan
or the original balance?
Let's say the original loan was $100,000 and my balance at the time of
adjustment is $85,000. Will the new payment at the time of adjustment
be based on 27 years (30-3), plus the new interest rate (5.75%) and the
NEW principal ($85,000)? If so, I would not mind paying down the
principal a little before the rate adjustment and re-amortization.
Thanks,
Kevin
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