what is better for your adjustable rate mortgage to be based on 6 month libor or 1 year?

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i can choose my bank just maid a claim that my loan should have been based on the one year they were basing it on the 6 month i have the docs to support it they ate all the money to reajust it to a 1 year but next month my payment goes up 80 bucks but the loan changes every year instead of 6 months

  1. Reply
    February 7, 2011 at 5:55 pm

    From a personal finance point of view, I would prefer the one year adjustment so I could plan for a year in advance and know if I could afford to buy the T.V. or have to wait just in case the mortgage goes up.

    Personally, I would never take out an adjustable rate mortgage. All that I have seen went up rapidly, but came down slowly.

  2. Reply
    February 7, 2011 at 6:49 pm

    WHY choose an ARM rather than a fixed rate when rates are so low now? You don’t have certainty about your payments at all. See if you can do a loan modification to change from ARM to fixed loan!

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