The 1st interest rate change date may occur when the 37th payment is due.
The Lifetime Interest Rate Cap is the maximum level to which your interest rate can rise, and is set at the beginning of your loan. Recasting or re-calculating your loan is another way of limiting negative amortization and keeping your loan on the original schedule. Subsequent interest rate changes may occur each month thereafter. Self-Employed borrowers who are looking for stated income financing. The start rate is used to calculate the Minimum Payment that you are required to pay for the first 12 monthly payments.
The monthly payment will be an amount sufficient to repay the unpaid principal balance at the then existing interest rate for the remaining term, in equal monthly installments. Before you make the Minimum Payment, it's important to understand deferred interest. Any payment option that would be less than the Minimum Payment in a particular month will not be available for that month. The principal balance will not be decreased by an interest only payment.