Refinance My Mortgage – I Want To Fix In My Adjustable Rate And Lower My Payment.

Why would your ARM adjust only upward, can they go down too? Yes they can go down but that is not what is happening in the market right now. Just a couple of examples of different indexes are the Treasury and the Libor. The Treasury has gone up from 1.595% in September of 2004 to 4.863% in September of 2007. The Libor has gone up from 2.1695% September of 2004 to 5.53500% in September of 2007. Your margin is the number that stays the same so add the margin to the index and that is your rate.

You can find your margin on your mortgage note also. Most loan officers do a horrible job of explaining an adjustable rate mortgage to their clients. They do not even know exactly how they work but they do know how to sell them.

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