| Title: | DCU |
| Notice: | 1996 BoD Election results in 1004 |
| Moderator: | CPEEDY::BRADLEY |
| Created: | Sat Feb 07 1987 |
| Last Modified: | Fri Jun 06 1997 |
| Last Successful Update: | Fri Jun 06 1997 |
| Number of topics: | 1041 |
| Total number of notes: | 18759 |
I AM A HOLDER OF ONE OF DCU'S MORTGAGES (THROUGH BANCBOSTON) AND
JUST GOT NOTIFICATION THAT MY ARM INTEREST RATE IS GOING FROM 8.25%
TO 10.25%, EFFECTIVE JAN 89. AREN'T INTEREST RATES COMING DOWN
AND NOT GOING UP ?????? I HAVE A 2% CAP/YEAR (TOTAL 6), BUT I
DON'T REALLY UNDERSTAND WHY IT IS GOING UP AT THIS TIME. I JUST
READ IN THE PAPERS TODAY THAT 3 BANKS IN MASSACHUSETTS (I FORGET
THE NAMES) ARE OFFERING FIXED, 30 YEAR MORTGAGES AT 9 7/8%.
CAN ANYONE EXPLAIN TO ME WHAT'S UP ?????
P.S. ANYONE KNOW IF ANY LOW, FIXED 2ND MORTGAGES I CAN APPLY FOR
??
THANKS
CONFUSED/BROKE
| T.R | Title | User | Personal Name | Date | Lines |
|---|---|---|---|---|---|
| 136.1 | MORE INFO | WOODRO::DHOULE | Fri Oct 28 1988 23:50 | 7 | |
CORRECTION: MY ARM IS GOING UP 2%, NOT 2.5%
HAS NAYONE ELSE GOTTNE AN INCREASE NOTICE IN THE PAST OR RECENTLY
?? IF YES, DOES IT MAKE SENSE TO YOU ??
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| 136.2 | What's your ARM tied too | DECWET::DUNLAP | Kevin Dunlap | Sat Oct 29 1988 18:03 | 9 |
What is your ARM's intrest rate tied to?
My ARM's intrest rate is based on the weekly average yield on the
US Treasury Bill for the last year. It doesn't matter that other
banks mortgage intrest rates are going down if your ARM is based
on an index that is going up.
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| 136.3 | Introductory rate? | NOTIME::SACKS | Gerald Sacks ZKO2-3/N30 DTN:381-2085 | Mon Oct 31 1988 09:50 | 2 |
Is it possible that your old rate was the introductory rate? If so, it
was probably below (index rate)+(margin), which is what your new rate is.
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| 136.4 | mine did the same last year... | CANYON::LEEDS | Scuba dooba doo | Sat Nov 05 1988 15:48 | 17 |
Same thing happened to me last year on my ARM (although not thru DCU). Most ARM loans have a "low introductory rate" to get you in, mine was 7.3%. However, at the annual adjustment, they take the T-Bill index as mentioned in .2 and add a percentage to it (mine is around 2.6%). If the T-Bill index is 8.2%, my arm rate for the next year would be 8.2 + 2.6 = 10.8. My first ARM adjustment went up the full 2% since the T-bill index was around 6.7. Adding the 2.6, my rate should have been 9.3, which was exactly 2% above what I paid the first year. My adjustment happens in April, so I don't know what it will be next year. However, if you are tied to the T-bill rate, most papers (WSJ, USA Today) publish the weekly 1 Year T-Bill index (USA Today calls it the "ARM index"). Yesterday it was 8.13% (so my rate if adjusted today would be at 10.73). It also shows that 6 months ago it was at 7.07% and 1 year ago it was at 6.73%. Arlan | |||||
| 136.5 | thanks | WOODRO::DHOULE | Sun Nov 20 1988 12:27 | 9 | |
Arlan,
thanks very much for the breakdown you gave. it makes more sense
now. but i'm still gonna look aorund for a fixed rate.
don
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