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#2033978 - 08/17/15 03:32 PM Early Arm Disclosure
mdog76 Offline
Platinum Poster
Joined: Jan 2007
Posts: 645
On our early arm disclosures, it uses the "worst case example" to illustrate the payment. In the language it states that "this can rise to a max of $xx in the fourth year." This discosure is for a 7/1 ARM. Is there a problem with that "fourth year" language?

Thank you and hope that made sense.

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#2034031 - 08/17/15 05:44 PM Re: Early Arm Disclosure mdog76
Rocky P Offline
Power Poster
Joined: Jun 2003
Posts: 7,441
Florida
What is the first adjustment cap, annual cap and maximum cap. Yours appears to be incorrect.

If it is a 7/1 with caps of 5/2/5 (initial/annual/maximum), then the maximum would be in the 8th year because the loan could go up the lifetime cap at the first adjustment.
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