Financial Regulation
Financial Regulation
smart spending
7 hidden gems of financial reform

Six months' notice to reset hybrid ARMs (Sec. 1418)
Next
3 of 9
Back
Six months' notice to reset hybrid ARMs (Sec. 1418)

During the mortgage meltdown of the past few years, many homeowners were caught by surprise when the low initial rate of their adjustable-rate mortgages expired and their mortgage loans reset to a sharply higher mortgage rate with a correspondingly high monthly payment. Such mortgage-rate resets often happened without warning, putting substantial pressure on homeowners already squeezed by the worsening economy.

The new financial reform law aims to prevent unpleasant interest rate surprises by informing homeowners at least six months ahead of time of an introductory mortgage-rate reset. Along with the notice, lenders will have to include an explanation of how the new mortgage rate will be set, a good faith estimate of the monthly payment, a list of alternative financial options and contact information for credit counseling agencies.


 

 

advertisement

Show Bankrate's community sharing policy
          Connect with us
REFINANCE HOME EQUITY AUTO CDs CREDIT CARDS
Product Rate Change Last week
30 year fixed refi 4.05%  0.06 3.99%
15 year fixed refi 3.11%  0.01 3.10%
10 year fixed refi 3.17%  0.04 3.13%
 
View Rates in your area Next
Product Rate Change Last week
30K FICO-based HELOC 4.32%  0.01 4.31%
50K FICO-based HELOC 4.06% --0.00 4.06%
100K FICO-based HELOC 3.92% --0.00 3.92%
 
View Rates in your area Next
Product Rate Change Last week
60 month used car loan 2.81% --0.00 2.81%
48 month used car loan 3.04% --0.00 3.04%
60 month new car loan 3.24% --0.00 3.24%
 
View Rates in your area Next
Product Rate Change Last week
1 Year CD 0.99%  0.01 0.98%
2 Year CD 1.19%  0.02 1.17%
5 Year CD 1.84%  0.01 1.85%
 
View Rates in your area Next
Product Rate Change Last week
Balance Transfer Cards 15.73%  0.01 15.72%
Cash Back Cards 16.43% --0.00 16.43%
Low Interest Cards 10.98%  0.02 10.96%
 
Next
advertisement
FRUGAL NEWSLETTER

Discover new ways to cut costs and save more every day. Reduce your spending, not life’s pleasures. Delivered weekly.

advertisement
Partner Center
advertisement

Connect with us