Get SevenYear LIBOR ARM Disclosure

With most ARMs, the interest rate and monthly payment change every month, quarter, year, 3 years, or 5 years. The period between rate changes is called the adjustment period.

The creditor or servicer does not have to send a notice when the rate initially or subsequently adjusts if the adjustable-rate mortgage has a term of one year or less.

The first time the interest rate changes on covered loans, 2 Regulation Z requires that servicers provide the notice at least 210 days but no more than 240 days prior to the due date of the first payment at the newly adjusted rate (notices are only required when the interest rate results in a change to the payment).

Current mortgage and refinance rates ProductInterest rateAPR7-year ARM6.078%6.870%5-year ARM5.800%6.948%3-year ARM6.125%7.204%30-year fixed-rate FHA5.866%6.778%5 more rows

The requirement that the § 1026.20(c) disclosures must be provided between 25 and 120 days before the first payment at the adjusted level is due for frequently-adjusting ARMs, applies to ARMs that adjust regularly at a maximum of every 60 days.

They receive an ARM program disclosure that describes the product's terms and features when they request an application. Borrowers also receive subsequent disclosures alerting them at the time of the initial interest rate change and again whenever a change in the payment amount occurs.

Regulation Z generally requires that the initial interest rate adjustment disclosure for an ARM be sent to a consumer at least 210 but no more than 240 days before the first adjusted payment is due.

A 7/1 ARM is a mortgage that has a fixed interest rate in the beginning, then switches to an adjustable or variable one. The 7 in 7/1 indicates the initial fixed period of seven years. After that, the interest rate adjusts once yearly based on the index stated in the loan agreement, plus a margin set by the lender.