2
votes
3answers
119 views

Formula for variable rate Canadian mortgage

What is the formula for calculating payments on a variable rate mortgage in Canada? (This source says variable rate mortgages are compounded differently than fixed rate mortgages) Concrete example: ...
8
votes
4answers
1k views

Will a 7/1 ARM be better vs a 30yr fix rate for a mortgage if I am prepaying part of the principal every year

I am a 1st time home buyer and I have just accepted a counter offer from a seller for a house that I like. The next step was to apply and get a mortgage for buying this house. Some background on the ...
2
votes
2answers
210 views

How is the 6th year on a 5/1 ARM calculated?

Given a 5/1 ARM for a $350,000 loan at a rate of 2.875%: After 5 years of paying at 2.875%, let's say the balance is $310,000. On the 6th year, the first adjustment kicks in an kicks the rate up 1% ...
2
votes
4answers
2k views

5/1 ARM: Lifetime cap, First Adjustment Cap, Margin, and Annual Cap?

I am looking over some paperwork for a 5/1 ARM. The loan information is as follows: Interest Rate: 2.75 Lifetime Cap: 5.00 First Adjustment Cap: 1.00 Annual Cap: 1.00 Margin: 1.75 I ...
5
votes
3answers
638 views

FHA Streamline Refi causes principal balance to increase $9000?

I am in the process of doing an FHA Streamline Refi from a 5% 30-year-fixed to a 2.7% 5/1 ARM. I will only have to come up with slightly less than the amount of my monthly mortgage payment at closing ...
3
votes
2answers
149 views

Should I renew the rate on my ARM to a lower one, considering the fees charged?

I have a 5-year ARM at 4.5% APR. I can renew the rate at 3.25%. However, that would cost $800. The current loan value is $156,219. Is it worth it for me to renew the rate? How long would it take to ...
11
votes
7answers
1k views

Want to refinance: 7-year ARM, 30-year fixed, or 15-year fixed?

We want to refinance; currently at 6% on a 30-year fixed. We are unsure how long we will be in the house but assuming at this time we will want to move within 7 to 10 years. We are offered a 3.75% ...