Real Estate Law
Have Real Estate Law Questions? Ask a Real Estate Lawyer.
Hello. Thank you for contacting me. My name is***** am a consultant here and I am looking forward to assisting you with your question. If at any point any of my answers aren’t clear please don’t hesitate to ask for clarification. Please be patient as I will be typing my responses to you from scratch. Also, I can only answer/address the questions you ask specifically based on the information your provide. Please try to provide as much information as possible so I can best assist you.
Please note: This is general information for educational purposes only and is not legal advice. No specific course of action is proposed herein, and no attorney-client relationship or privilege is formed by speaking to an expert on this site. By continuing, you confirm that you understand and agree to these terms.
The first question I have is, is your loan an adjustable rate mortgage (ARM)?
I think what you have is a 5/1 ARM where the interest rate is fixed for the first five years and then the rate adjusts once each year beginning in year 6.
Did you do your modification through the Making Homes Affordable Act?
It sounds like you may have done a modification to a 5/1 ARM loan that does not have the interest rates capped by the Making Homes Affordable Act.
So to answer your questions, it doesn't seem like Obama's new laws would apply here and as to the cap on interest rates, the increase is within the amount allowable for an ARM.