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Is my bank miscalculating my ARM rate?

My loan is a 5/1 hybrid that has reset to floating rate (1 yr CMT + 275). The mortgage note lists a floor rate for the 1st reset date but none going forward. My bank says that the hud statement shows the floor schedule and that takes precedent. Is that right? should the floor schedule have to be on the note to be binding?
By ddevine3388 from CA Jun 3rd 2015
Reply

Rates are so low right now, why don't you just get a 30 fixed rate loan and never have to worry about it moving again. go to my web site or contact me at 619 807 5417 bakerhomeloan.com

Jun 3rd 2015

Hi Ddevine3388, lets get your ? answered. The forms that deal with Rate changes are in the following forms only: "NOTE", "ARM Rider". The HUD statement only shows details of loan cost and nothing about Rate or any loan specifics. I am curious why are you worried about the floor, when the rates are rising and the main concern should be the caps. Sal@mortgagebayarea.com

Jun 3rd 2015

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