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#1536300 - 04/15/11 06:28 PM Loan Terms HUD-1
Patricia Offline
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Joined: Mar 2011
Posts: 327
Kansas
Stmt on Page 3 of HUD-1. "Even if you make pmts on time, can your mo. amt. owed for P&I and Mtg Ins. rise?" Iam having trouble with this. Rate is fixed for 5 years and then can adjust every 5 years, however, the initial rate is fully indexed. So do I add the annual cap to the intial rate to calculate the first pmt. For example initial rate is 6.50%+2.00% = 8.50% and keep adding 2% to each rate (8.50 + 2.00%= 10.50%) until I reach the lifetime cap? Can anyone help me with this? Thanks.
(The TIL shows one payment stream which is more than the fully indexed rate)

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#1536610 - 04/18/11 01:23 PM Re: Loan Terms HUD-1 Patricia
Patricia Offline
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Joined: Mar 2011
Posts: 327
Kansas
bump

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#1536617 - 04/18/11 01:52 PM Re: Loan Terms HUD-1 Patricia
rockchalk02 Offline
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Joined: Jul 2009
Posts: 187
Yes, your payment can rise, even if payments are made on time after the first 5 years of the fixed period has expired. You will need to calculate the highest interest rate you can ever possibly have (max out the caps) and then show that highest possible P&I payment.

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#1536657 - 04/18/11 02:42 PM Re: Loan Terms HUD-1 rockchalk02
Patricia Offline
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Joined: Mar 2011
Posts: 327
Kansas
Thanks rockchalk.

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