Mortgage Blog

I have one borrower wants to have 5/1ARM today, and when I provided the GFE,
he was not happy about the GFE since it said that the rate will change
in 60 months. And he thinks that the right terminalogy about this
rate term change should be "after" 60 months for 5/1ARM.

This form is regulated and provided by HUD. And we generate those
forms by the origination software we are using. Basically we can not
change anything. And this form is only a good faith "estimate" and will be
overwritten by the NOTE. The final note will specify when the rate
will reset.

Hope this will help those who has similar questions