Question about my monthly mortgage payment on a 351,000.00 Home Loan?
I currently have a home loan which stayed fixed for the first two years at 7.65% and was interest only during that two year period.(I know, a bad loan-house on the market now!!) This past May this loan increased the maximum allowed in a 6 month period of 1.5% and is tied to the 6 month Libor Index. The amount of my monthly payment went from approximately 2250.00 to 2900.00 as a result of this first adjustment. I was told that the payment increased almost 700.00, which would be higher than a simple 1.5% adjustment, because the first increase included an extra amount linked to the conversion to a principal + interest loan. I was informed during a recent attempt to refinance that the next increase, based on the 1.5% maximum, would result in approximately 300.00 added to my monthly payment the next adjustment period and not another 700.00. Is this correct? What is the simplest way to predict what my new payment will be when it adjusts again in November?(If house hasn’t sold yet of course)