Mortgage Advice Needed

[Jeremy P.]

Hey. I can use a little advice.

In June 2012, I took out a 7 year ARM at 4%.

This past June, I was notified that my ARM has expired and my interest rate will rise. With rates where they are, do the numbers below make sense?

Effective Interest Rate: 5.375%

Loan Type: Conventional

Next Change: 6/1/20

Payment Interest Rate Change: 12 Months

Interest Rate Change: 12 Months

1 year usts monthly average

Index Rate: 2.55%

Margin: 2.75%

Rounding Factor: .125%

This is a huge increase in my monthly mortgage payments. While I have a lot of liquid assets and perfect credit, I can’t refinance to a 30 year fixed or anything else because my income doesn’t show much.

Anyone have any advice on options to adjust this or when the rate may go up even higher or lower?

I don’t know much about the mortgage business so please pardon my ignorance.

Thanks,

JP