So I have a 5 year ARM. My 5 yr fixed period ends on Aug 1st. My current rate is 3.75%. Im looking into all of my refinancing options.
My mortgage can increase a max of 2% per year to a max of 8.75%.
Im trying to figure out what my new rate will be if the rate was resetting right now. Here is the exact wording:
"The adjustable rate will will be based on an index. The index is the weekly average yield on United States Treasury securites adjusted to a constant maturity of one year, as made available by the Federal Reserve Board. The most recent index figure available as of the daye 45 days before each Change date is called the current index.
Before each change date, the note holder will calculate my new interest rate by adding 2.75% to the current index. It will then be rounded to the nearest 1/8 of one percent (.125%)........."
So is my mortgage indexed to the 1yr treasury bills which right here
Treasury Bills | Constant Maturity Index Rate Yield Bonds Notes US 10 5 1 Year Rates
shows to be 2.09% which would put me at 2.09 + 2.75 = 4.84% and then rounded up to 4.875%? Or am I looking at the wrong index?
Im getting close to the 45 day mark so whatever the rate is in the next 2 weeks or so will be the rate I be using. I just dont know if Im looking at the right index or not.
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