Posted by BeccaWI on 6/14/05 12:05pm
Msg #44529

Chase closing

Can anyone help me verbalize why there is a Fixed Rate Note and a Fixed Rate Rider? I am having a hard time putting it together so it sounds correct!!!

I appreciate any help!

Reply by Becca/FL on 6/14/05 12:26pm
Msg #44535

Do you mean Adjustable Rate Rider? If so, the adjustable rate rider(s) are attached to the Note and the Mtg/DOT. The rider states that the loan terms/rate is adjustable and shows change dates, limits, etc.

Reply by BeccaWI on 6/14/05 12:30pm
Msg #44536

I have that and an Adjustable Rate Note! Hence the confusion for me! I faxed them to Sylvia so I am sure she can lift the fog for me!

Reply by Becca/FL on 6/14/05 12:37pm
Msg #44541

You would explain it the same way you explain a fixed rate note (pointing to the pertinent info, ie; amount, rate, length, P&I, 1st due date, prepay, etc.) the only thing different is that there's a change date and limits.

Don't make it harder than it is.

Reply by BeccaWI on 6/14/05 12:41pm
Msg #44544

See, that seems soo simple! I guess I tend to make it harder! Thanks Becca

Reply by Sylvia_FL on 6/14/05 9:53pm
Msg #44690

Re: Chase closing - Clarification

Just because there is a certain mean spirited person in here that posts info from this board to another, I need to clarify that BeccaWI did indeed fax me over the first page of the Note and the rider after she had copied them and blacked out the borrowers information,so no borrowers privacy was compromised.

Reply by PAW_Fl on 6/14/05 12:59pm
Msg #44553

Becca_WI:

After talking with Sylvia, what you have is a Fixed/Adjustable Note (commonly called a hybrid mortgage) which is simply an Adjustable Rate Note (which requires an Adjustable Rate Rider to the mortgage/DOT) that has a Fixed Rate period. Hybrid mortgages such as a 2/1 ARM, 3/1 ARM, 5/1 ARM or 7/1 ARM have a fixed rate for two, three, five or seven years, respectively. After the fixed-rate period, the interest rates are reset annually subject to limitations written into the mortgage note. There could be a lifetime cap on the interest rate or a maximum move for an individual reset period.

Hybrid mortgages are called that because they are fixed-rate loans initially and then become adjustable-rate loans. The pricing indexes are short-term interest rate indexes.

Reply by BeccaWI on 6/14/05 1:08pm
Msg #44560

Thanks! I did talk to Sylvia and it makes sense now, I just couldn't figure in my mind what it was about!! Thanks for explaining!

Reply by Terry_MN on 6/14/05 4:02pm
Msg #44617

In addition, since the Mortgage or Deed of Trust does not contain any language which pertains to the interest rate, a rider is used for this pupose.