We are one of those people who signed up 5 years ago for a 5 year ARM (Adjustable Rate Mortgage). It will adjust (for the next year) at the end of next month and the dreaded paper came today.
I know when we signed up there was a cap on how high it could go (tight but manageable) and the adjustment also had something to do with some interest rate somewhere in the world. I know you're all scared and thinking ElCid better not die or I'm totally gonna be in trouble.
Anyhow back to the paper... it went down. By $9. I read the paper 3 times to be sure I was understanding what it says and I'm very sure that I do and it went down!! I will still be sending them the same amount every month (a round number just higher than the original amount) but I am so relieved it didn't sky rocket like I was afraid of! It will adjust again next year about this time so it will be a year to year worry but now I have 12 months before I have to worry again!
I know when we signed up there was a cap on how high it could go (tight but manageable) and the adjustment also had something to do with some interest rate somewhere in the world. I know you're all scared and thinking ElCid better not die or I'm totally gonna be in trouble.
Anyhow back to the paper... it went down. By $9. I read the paper 3 times to be sure I was understanding what it says and I'm very sure that I do and it went down!! I will still be sending them the same amount every month (a round number just higher than the original amount) but I am so relieved it didn't sky rocket like I was afraid of! It will adjust again next year about this time so it will be a year to year worry but now I have 12 months before I have to worry again!
The work break is over, I just had to share the happy news!
6 comments:
What?!?!? I totally did not understand a word of that! I totally don't get any of it....my husband does all that stuff for us...so I guess I never have to worry about it.
So, I'm not sure if it's a good thing or a bad thing for you?!?!? Hopefully good:)
My impression was that ARM's were certain death as the interest rates were climbing but I do recall that interest rates have been declining. Just didn't realize that it was enough to lower your payments! Great news and good NOT lowering how much you send... smart girl (and ElCidCPA ;-)
xoxoxox
holy crap dude! my sister did that too and taught me about it so i've been scared to death of those arm thingies. thats freakin awesome for you!
word verification is: martr
So now you can spend $9 a month buying nice things for your favorite siblings? =)
Awesome! We just refinanced to get out of our ARM but could have stayed and saved 5 or 10 dollars like you. Eh, we just took the easy way out. :)
What is up with your comment widget? It is starting to count down instead of up.
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