ARM mortgage, when do we find out the real interest rate?

I just did the closing and find out that real interes rate for thsi mortgage is 9.25 % . It's a 5 year arm. I wander if any1 knows when and where in the document during the processing ( not a closing) lender or brouker should specify the real INteres rate not an option for 5 years. Is truth in lending under APR should have the real rate or the introduction rate?


Thanks for the help.ARM mortgage, when do we find out the real interest rate?
They should have given you a Good Faith Estimate and you should have signed a Loan Lock agreement. What sort of ARM is this? Some ARMS adjust with the very first payment. Some have fixed rates for up to 5 years.





There also should have been an ARM disclosure statement that explains the specific terms of your note (loan).





Now that I see your additional details I can better answer your question.





The mortgage you are in is an option-arm also known as a negative amortization loan. This means that you'll have a few different amounts to choose from as far as what you'll pay monthly. If you pay the minimum, you won't be paying the full amount of montly interest, and your principal balance will actually increase.





Unless you're in a really desperate situation, I really advise against paying the minimum. You'll never pay down the balance of your loan this way. It will just going up and up.





Who put you in this loan program? These are the sort of loan programs that got a lot of lenders, and customers into trouble because people didn't realize until after closing that they really couldn't afford their loan. I hope this isn't the case for you.ARM mortgage, when do we find out the real interest rate?
Did you somehow think that an ARM was a fixed rate loan ? It IS fixed rate, but only for a specified period of time. You need to check your loan documentation for further review. However, if the lender clearly explained that you were taking an Adjustable Rate Mortgage at a certain specified interest rate to start, there's not much you can do.





That is what an ARM is.
Sounds like you have the pay option arm. You are supposed to received a GFE,(good faith estimate), TIL(truth in lending statement), and 1003,(loan application) within 3 days of application, however, this obviously does not always happen.
Hi


The interest rate on ARMs varies. These loans may have low rates for a short time--maybe only for the first year. (teaser rate). After that, the rates may be adjusted on a regular basis. This means that the interest rate and the amount of the monthly payment may go up or down.


The interest rate on your mortgage is tied to an index or interest rates that are always fluctuating. Think of bank loan rates, depending on when you want to borrow money the interest rate may be higher or lower. ARM mortgages track interest changes and periodically change along with them.


Thats why your future monthly payments are uncertain. Some ARM's put a ceiling on your pay颅ment increase from one period to the next.