The 1st interest rate change date may occur when the 1st payment is due.
These options are not available after 5 years or if the loan has reached it's amortization cap. The main purpose of recasting is ensure the loan is paid off within the scheduled amortization period. Even when your loan is recast the Lifetime Interest Rate Cap stays in effect. The 1st payment change date may occur when the 61st payment is due. Rates can change, and the maximum interest rate is normally high. With fully amortizing payments, you pay both principal and interest and keep your loan on schedule. The 1st interest rate change date may occur when the 1st payment is due. The 1st interest rate change date may occur when the 3rd payment is due. The Minimum Payment is always the smallest amount that you must pay.
The Minimum Payment amount remains the same even when the start rate is no longer in effect and interest is computed on your loan at the Fully Indexed Rate. The 1st payment change date may occur when the 37th payment is due. Rates will adjust and payments will change over time.
The minimum payment remains unchanged during the initial fixed rate period. If you make a Full Principal and Interest Payment every month, you keep your loan on schedule. Every month, your home loan is charged interest, based on the remaining principal balance and the applicable interest rate. Just enter the correct amount in the payment coupon section of your statement. Subsequent interest rate changes may occur each 6 months thereafter. The 1st payment change date may occur when the 85th payment is due. These options should be clearly marked on your loan statement, so it is very easy to figure out how much you should pay each month.