Anyone else here find that the new payment tables convey less useful information and are way more confusing than the old payment schedule?
IMHO - they should have left the payment schedule intact and simply added an ARM section that would state the highest possible payment amount on the first rate change, the date of that first rate change, and then the highest possible payment amount for the loan and the date by which that could occur.
I think this new disclosure format does a disservice to consumers.
Here would be my example for a discounted 5/1 ARM put in a table format where the payment amount is in a column to the right labeled LOAN PAYMENT. The additional payments would go in a column on the far right labeled ADDITIONAL PAYMENTS ADDED TO THE LOAN PAYMENT.
INITIAL PAYMENT SCHEDULE (Subject to change after 60 months)
60 payments beginning May 1, 2011: $1,025.58
300 payments beginning May 1, 2016: $1,250.75
The above payment schedule is based on a current index rate of .275%.
POSSIBLE CHANGES TO YOUR PAYMENT SCHEDULE:
If that index rate goes up, your payments could increase as follows:
Payments starting May 1, 2016 could go as high as: $1,362.53
Your interest rate and payment are subject
to change every 12 months after.
If the index rate continues to remain at a
high level, your highest payment could be as early as:
May 1, 2017: $1,782.53
ADDITIONAL REQUIRED PAYMENTS:
In addition to the principal and interest payments, you are required to pay the following items:
Private Mortgage Insurance: $98.00
Per month for at least 70 months.
Property Tax monthly payments starting at: $112.00
Insurance monthly payments starting at: $75.00
Property tax and Insurance payments may
increase if taxes and insurance premiums
Well - it's a thought.......
Regulations are a poor substitute for ethics.