From: "John A. Weeks III" 
Newsgroups: misc.consumers.house
Subject: Re: should i sell or refinance
Date: Tue, 05 Dec 2006 20:12:58 -0600

In article <1MWdndHrUZF3gevYnZ2dnUVZ_o6dnZ2d@comcast.com>,
 "John Weiss"  wrote:

> "rexy"  wrote...
> > bought my home for $97000, now is worth $118,000, and my interest rate
> > is 9.6% two yrs adjustable, 30yrs, and am afraid if my rate might
> > increase by 2007 feb, spoke with some mortg/lenders the rate the
> > goffered me is 10.6% cos my credit report is bout 540, and my
> > bankcrupcy was discharge october last yr, and have live in my home for
> > about 2 yrs now , what should i do from now till feb next yr when is
> > suppose to adjust.
> 
> What is the basis for the adjustment?  If overall interest rates remain the 
> same as today, what will your new rate be?

That is a great question.  He could be on a very high rate loan,
but still in the teaser rate period.  For example, this loan might
max out at 14%, but starts at 7%, with a 1% raise every 6 months
or every year until it hits that 14% limit.

-john-

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John A. Weeks III           952-432-2708            john@johnweeks.com
Newave Communications                         http://www.johnweeks.com
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