Skip to content

Calculating APOR for 5/1 ARM

Answered by: 

Question: 
If we have a 5/1 ARM when we use the ARM table do we use 5 yr APOR rate or the 30 yr? A lot of people are saying we should use the 30 yr versus the change date because the rate can actually go down depending on rates?
Answer: 

You use the term to the first rate change date. Open the FFIEC calculator, click on HELP and then search "Variable term".

First published on BankersOnline.com 3/21/11

First published on 03/21/2011

Filed under: 
Filed under lending as: 

Banker Store View All

From training, policies, forms, and publications, to office products and occasional gifts, it’s available here:

Banker Store

hot right now

image description

Looking for effective, convenient training on a particular subject?

BOL Learning Connect offers more than 200 courses ON-DEMAND or on CD ROM from AML to Reg Z and every topic in between.

Search Topics