My ARM adjusts next month. I knew this was coming and was notified by my mortgage provider -- but their notification was inaccurate. I have spoken to the mortgage provider on the phones several times in an attempt to clarify this matter, but have not rcvd final written clarification. Do i have any rights to prevent/delay (temporarily) the rate adjustment?
Their notification(s) erroneouslly say that after the adjustment the loan is still "interest only" and therefore when they detail the new monthly payment, the entire amount is on the "interest" line -- $0 on the "principal" line. This is inccorect -- I/O period ends when the rate adjusts -- and the lender has basically admitted that over the phone (but I'm not entirely confident that the person i've been dealing with understands what I am trying to explain) and have asked to see that in writing. I've double and triple-checked the original loan docs from closing and crunched the numbers in an amortization calculator, and am 100% confident that the new monthly should inlcude ~$450 in principal (almost half of the increase in the monthly payment).
We're in the process of deciding to re-fi or keep the current (adjusted) note. We will likely sell and buy a new home in the next 6-12 months, so there's a good chance the costs associated with a re-fi will not make it worth it. We can afford the new monthly, but it is impossible to make an accurate cost/benefit analysis between the new montly payment or re-fi if it is unclear if the new payment amount includes any pay-down of principal or if it is all interest -- there's a big difference between a $1000 increase ($0 principal) and a $1000 increase, $450 of which is principal.
I've probably cut it too close to get a re-fi completed before the rate adjusts (8/1, new monthly due 9/1) -- in part b/c i've been waiting for clarification from mortage company. I'm assuming that if we close on a re-fi on 8/15, we will still be liable for the higher interest rate for the period 8/1-8/15.
Can i force my lender to delay the rate increase until they have accurately notified me of the rate/payment change?
Any advice and insigth would be much appreciated. Thanks.