City-Data Forum Adjustable Rate Mortgage Calculation (loan, fixed rate, interest, upfront)
 User Name Remember Me Password [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.

05-15-2011, 07:07 PM
 10 posts, read 19,056 times Reputation: 12

Interest Jan1, 2010=2.15%
Interest Dec31 ,2010=2.90%
Opening Principal Balance Jan 1, 2010: 247,220.02
Closing Principal Balance Dec31, 2010: 243,237.30
Total Interest Paid in 2010 : 5909.67
Total Principal Paid in 2010: 3982.72
Payment Frequency : Monthly, P+I Payment= 893

I need to know how are they calculating these figures, I even don't know what was total mortgage amount at start? Can we work out other figures by formulas. Please post detail calculations with formulas.

05-16-2011, 01:55 PM
 Location: Laguna Niguel, CA 768 posts, read 4,141,306 times Reputation: 456
The below is a pre-written article from me, most of it will apply to your situation.

On an ARM, when the rate is going to adjust, there are a few things that it is based on. First thing you want to do before reading this is go into the loan docs you signed/received a copy of at closing, in those docs are some papers called the "Note" or "Adjustable Rate Note" or "Adjustable Rate Rider", sometimes you'll get just an Adjustable Rate Note, or sometimes it'll be a Note with the two addendums, it varies slightly with each lender and each state.

When you go to apply for a new ARM you can get all of this information upfront - index, margin + caps. The caps are usually in a X/X/X format, where the first X is the initial cap, 2nd X is the subsequent cap, and the 3rd X is the lifetime cap - such as 5/2/5, 2/1/5, etc.

05-16-2011, 02:55 PM
 10 posts, read 19,056 times Reputation: 12
Open ARM Mortgage
The broker docs shows variable interest rate of CIBC Prime-0.100%compounded semi-annually, 25 years amortization, 5 years term, the original amount of loan at start was \$253,158.71, there is nothing like in x/x/x format.

Last edited by RightAtHome; 05-16-2011 at 03:13 PM.. Reason: ARM

05-16-2011, 04:33 PM
 10 posts, read 19,056 times Reputation: 12
Some of Mortgage Docs are available on its website.
FirstLine Mortgages Solicitor Documents - Ontario

05-16-2011, 06:35 PM
 Location: Laguna Niguel, CA 768 posts, read 4,141,306 times Reputation: 456
So your interest rate is the CIBC Prime rate minus .1%.

Here is the historical index of the CIBC Prime rate.

http://www.fin.gov.bc.ca/PT/bcm/ref/...ricalPrime.pdf
 Please register to post and access all features of our very popular forum. It is free and quick. Over \$68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned. Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.