Consumer Handbook On Adjustable Rate Mortgages

Mortgage amount

Basic Features for Comparison

Fixed-rate annual percentage rate (the cost of your credit as a yearly rate which includes both interest and other charges)

     ARM annual percentage rate

     Adjustment period

     Index used and current rate

     Margin

     Initial payment without discount

     Initial payment with discount (if any)

     How long will discount last?

     Interest rate caps: periodic and overall

     Payment caps

     Negative amortization

     Convertibility or prepayment privilege

     Initial fees and charges

Monthly Payment Amounts

What will my monthly payment be after twelve months if the index rate:

     stays the same

     goes up 2%

     goes down 2%,

What will my monthly payments be after three years if the index rate:

     stays the same goes up 2% per year

     goes down 2% per year

Take into account any caps on your mortgage and remember it may run 30 years.