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Adjustable-Rate Mortgages (ARMs)
Comparing Mortgages: Your Mortgage Checklist

 

To compare one adjustable-rate mortgage (ARM) with another or with a fixed-rate mortgage, you need to know about indexes, margins, discounts, caps, negative amortization, and convertibility. You need to consider the maximum amount your monthly payment could increase. Most important, you need to compare what might happen to your mortgage costs with your future ability to pay. Asking lenders to fill out this checklist is a good way to get the information you need to compare mortgages.

 

Print this mortgage checklist for your convenience, and ask your mortgage lender to help you complete it.

 

 

  

Mortgage A

Mortgage B

Mortgage Amount

Fill in blank for Mortgage A Fill in blank for Mortgage B

Basic Features for Comparision

Fixed-rate annual percentage rate
(the cost of your credit as a yearly rate,
including both interest and other charges)

Fill in blank for Mortgage A Fill in blank for Mortgage B
ARM annual percentage rate Fill in blank for Mortgage A Fill in blank for Mortgage B

 

Adjustment period Fill in blank for Mortgage A Fill in blank for Mortgage B
  Index used and current rate Fill in blank for Mortgage A Fill in blank for Mortgage B
  Margin Fill in blank for Mortgage A Fill in blank for Mortgage B
  Initial payment without discount Fill in blank for Mortgage A Fill in blank for Mortgage B
  Initial payment with discount (if any) Fill in blank for Mortgage A Fill in blank for Mortgage B
  How long will discount last? Fill in blank for Mortgage A Fill in blank for Mortgage B
  Interest-rate caps: periodic Fill in blank for Mortgage A Fill in blank for Mortgage B
  Interest-rate caps: overall Fill in blank for Mortgage A Fill in blank for Mortgage B
  Payment caps Fill in blank for Mortgage A Fill in blank for Mortgage B
  Negative amortization Fill in blank for Mortgage A Fill in blank for Mortgage B
  Convertibility or prepayment privilege Fill in blank for Mortgage A Fill in blank for Mortgage B
  Initial fees and charges Fill in blank for Mortgage A Fill in blank for Mortgage B

Monthly Payment Amounts

     

What will my monthly payment be after 12 months if the index rate:

    

 

stays the same Fill in blank for Mortgage A Fill in blank for Mortgage B

 

goes up 2% Fill in blank for Mortgage A Fill in blank for Mortgage B

 

goes down 2% Fill in blank for Mortgage A Fill in blank for Mortgage B
What will my monthly payment be after 3 years if the index rate:      

 

stays the same Fill in blank for Mortgage A Fill in blank for Mortgage B

 

goes up 2% per year Fill in blank for Mortgage A Fill in blank for Mortgage B

 

goes down 2% per year Fill in blank for Mortgage A Fill in blank for Mortgage B
Take into account any caps on your mortgage and remember that it may run 30 years.
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