Agility Mortgage Corporation

What is an adjustable rate Mortgage?

An adjustable rate mortgage (ARM) is a loan under which the interest rate is periodically adjusted to more closely coincide with current rates. The amounts and times of adjustment are agreed to in the Adjustable Rate Note signed by the homeowner.

How is my new interest rate determined?

Most adjustable Rate Mortgages require that an index be taken on a specific date, then a margin is added to the index and the result is rounded to determine the new interest rate.

Why is my interest rate going up but my payment going down?

If you have remitted extra money in addition to your regular payment, you will have lowered your principal balance, new interest rate and remaining term. If you have remitted enough extra money, it is possible to lower your monthly payment even though your interest rate increases.

When are my payments due?

Your payment due date is established when you originated your loan and is stated in your Note. Most Notes state that the payment is due by the first of the month.

If I deeded my interest in the property to my spouse or someone else, does this remove my liability?

No, Deeding your interest in the property to someone else only means that you no longer own the home. You are still obligated to make payments, as stated in your Note and Mortgage.

Can I pay my own taxes and insurance?

Collecting for taxes and insurance in your monthly payment creates an escrow account. This is established at the closing of the loan and will remain for the term of the loan. An escrow account provides a convenient way allowing the Lender to pay your tax bills and insurance premiums for you.