How Mthe Terms and Conditions of the Trial Period Vary from the Official Adjustment?
Once your loan is changed, your interest rate and monthly principal and interest payment will be fixed for the life of your mortgage unless your initial modified interest rate is below current market interest rates. If the servicer lowered your mortgage interest rate to make your premiums more low-cost, your initial modified interest rate could be below current market interest rates. In that situation, the initial interest rate will be fixed for five years, and the amount you pay each month for principal and interest will not change for those five calendar years or 60 months. After five years, your interest rate will rise by 1% yearly until it reaches the cap, which would equal the market interest rate being charged by mortgage lenders on the day your official modification agreement was prepared (the Freddie Mac Primary Mortgage Market Survey Rate for 30-year, fixed-rate conforming mortgages). Once your interest rate reaches that cap, it will be settled for the life of your loan. Like
