0
If you have a 5 year ARM loan that stays the same for 5 years does the rate increase or decrease after that?
Wiki User
∙ 16y ago
The loan will either increase or decrease depending on the loan rates at the time. You should be able to refinance anytime that you want to after the first year or so without a prepayment penalty. You would want to do this because it will make your finances more stable if the rate does not fluctuate.
The rates are based on LIBOR (London Interbank Offered Rate) which is the world's most widely used benchmark for short-term interest rates. The lender will add a percentage or two, depending on your credit score. Check around, including your current lender, to see what rate you can get.
Wiki User
∙ 16y ago
Add your answer:
Earn +20 pts
What will cause a decrease in one liability and an increase in another liability?
Paying off one loan by getting another loan will decrease one liability and increase another.
Is loan account real nominal or personal?
Loan account is a personal account in nature so increase with debit and decrease with credit.
What will decrease a liability and increase a liability?
account payable paid-off by arranging a new loan.
Why do rates go up on an ARM interest only mortgage?
Every ARM loan is tied to an index and that has a rate that can increase or decrease. Your loan also has a margin which stays constant. The average margin in 2.25%. Read your Note it will tell you when the first adjustment will be and this will cause your interest rate to increase or decrease. Your payment will adjust, but according to the Note it will still be Interest Only for the period stated on the note. You will see a big increase when the Interest Only period is over and your payment becomes, Principal and Interest.
How long after repossession can you get a car loan?
The repossession stays on your credit report for 7 years.
What does a repossessin do to your credit?
Stays on your 3 credit reports for 7 years. This makes it very difficult to get a loan.
Does paying off a car loan decrease your credit score?
No you should see your score move some, paying off your balance on your car loan only decreases you debt ratio which in turn increase your score.
Would banks decrease or increase interest rates if they had less money to loan?
If banks had less money to loan they would increase their interest rates. This is because they would have to make the most profit off of the little money that they had to use. When banks have a lot of money to loan, interest rates are lower because they can still get a lot of interest even from the lower interest rates.
What type of loan allows you to borrow money from your homes equity loan?
A home equity loan allows you to borrow money on a mortgage loan. Though this can be beneficial if your home increases in value over the years, it may also be a risk if your home would decrease in value.
If you apply for an auto loan and have a cosigner will that decrease the amount of positive credit you get from having that loan?
Nope
If cosigners for student loan miss a mortgage payment will this affect student loan?
As long as loan stays current, credit & other obligations irrelevant.
What is the difference between A variable rate home loan and a fixed rate home loan?
The lender can change the rate on a variable rate loan. A fixed rate stays the same for the life of the loan.
