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05-02-2009, 07:48 AM
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6 posts, read 7,759 times
Reputation: 12
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In my loan papers, I don't see anything called "margin" and now that my 5/1 ARM is about to become adjustable, I was researching what my new payments might look like. I understand it's margin+Libor. My ARM is a 5/1 Libor 5/2/5 caps.
I've read that lenders are not required to tell you what the margin is.
Seems that would be a mandatory item in the Truth and Lending document. What's truthful about hiding a figure that could cost me thouands upon thousands of $ ?
Shouldn't it be printed in the contract in order to be a legal document? I mean, they could just manufacture a number since it appears not to be printed anywhere. Or is the margin also called something else? Am I understanding this correctly ? I called HSBC hoping to find out what it is, but they're closed today.
Uhhh; it's always something. I'd appreciate any assistance. Thanks.
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05-04-2009, 12:57 PM
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Location: Wake Forest, NC
835 posts, read 3,757,839 times
Reputation: 649
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Your margin is going to be in your adjustable rate rider to your Deed of Trust at least here in NC it is. If you don't see it there check your note. It is not an arbitrary number it is part of your loan documents.
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05-04-2009, 07:47 PM
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Location: Plano, Texas
1,675 posts, read 6,642,932 times
Reputation: 693
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Your margin will be noted in the adjustable rate rider you received with your other closing documents. If you have or had good credit at the time, your margin will be more than likely somewhere between 2 and 4%. At the current level of the libor rate, your interest rate could very well adjust down.
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05-05-2009, 01:37 AM
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Location: San Jose (Willow Glen)
180 posts, read 652,249 times
Reputation: 96
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Quote:
Originally Posted by VictorBurek
Your margin will be noted in the adjustable rate rider you received with your other closing documents. If you have or had good credit at the time, your margin will be more than likely somewhere between 2 and 4%. At the current level of the libor rate, your interest rate could very well adjust down.
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4% margin?? I never saw those. Almost all of them were 2%-2.75%.
To the OP, it's in there. Check the Note under the interest rate section. |
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05-05-2009, 04:10 AM
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Location: Plano, Texas
1,675 posts, read 6,642,932 times
Reputation: 693
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Quote:
Originally Posted by AndrewSoss
4% margin?? I never saw those. Almost all of them were 2%-2.75%.
To the OP, it's in there. Check the Note under the interest rate section.
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Never saw a 4% margin. Some subprime loans had margins of 6%. I was just trying to give a range. |
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05-05-2009, 09:33 AM
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995 posts, read 3,695,096 times
Reputation: 361
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Quote:
Originally Posted by AndrewSoss
4% margin?? I never saw those. Almost all of them were 2%-2.75%.
To the OP, it's in there. Check the Note under the interest rate section.
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In my case, it's 2.25%. It's in the note. |
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05-06-2009, 12:48 AM
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Location: San Jose (Willow Glen)
180 posts, read 652,249 times
Reputation: 96
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Quote:
Originally Posted by VictorBurek
Never saw a 4% margin. Some subprime loans had margins of 6%. I was just trying to give a range.
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yeah, I assumed it wasn't subprime. I'm pretty sure all those people are foreclosed or modded by now, right? =) |
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