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Real Estate tgj

Eileen M. Day REALTOR

BEST AND WORST SCENARIOS

All lenders must now meet disclosure requirements for ad justable rate mortgages (ARMS). Among these are: An historical example of how the requested loan would have worked during the last 15 years: how to convert that example to the borrower's own situation, and a worst case illustration of how the loan could perform if rates go up through the roof

To show how the loan will perform under the worst possible circumstances, the example starts at the initial rate and moves rapidly up to the top interest rate and payment possible. Lenders must also explain how the index is adjusted and how future inter esf rates and payments will be determined.

77.9%