>>>>What is your current interest rate? Many ARM loans have a maximum amount they can adjust (either upward, downward, or both). Loans vary, and some may have the possibility of a large initial adjustment, then limited subsequent adjustments.

In any case, I would absolutely NOT wait until the adjustment takes place to call someone and inquire as to what's going on. I would be on the phone immediately if not sooner.<<<


Initial adjustment only limited by the overall cap and min of 11.375 and 2.25 %. Future adjustments limited to 1%. This is the first adjustment and it should adjust to the 2.5 to 2.75 range.

After posting I decided to go ahead and call. Last night I was disconnected 4 times after the agent "put me on hold to look at my account."

This morning I tried again and the same thing happened twice before I got an agent to understand not to put me on hold.

The agent agreed that the rate should adjust to less than 3% given the current index but could offer no explanation why the letter indicated a much higher P&I payment. Her final answer was that it should be correct when the actual rate changes and to just wait until then.

I feel a bit like Charley Brown getting ready to kick the ball. I hope that GMAC does not act like Lucy.


As for refinancing, sure great option, but not possible as far as I can tell. Or should I rephrase possible but the PMI + upfront charges make it unattractive to me at this time. Especially, since my rate will "should" drop to 1/4 to a 1/2 point lower than the best rate I could get for a fixed.