The following table provides a list of additional information that must be included in the notice for an interest rate change for ARM plans in which the interest rate changes more frequently than the payment.
The method used to determine the full payment amount and why the monthly payment will not be changed to that amount (if applicable).
The amount of any negative amortization that will occur until the next interest change date when the monthly payment is not being changed to keep pace with the mortgage loan interest rate.
Click here to see the additional notice requirements for an interest rate change for ARM plan in the instance the borrower is given the option of limiting the payment increase.
See below for related Q&A’s:
For more information please see: C-2.1-02: Notifying the Borrower Regarding Interest Rate and/or Payment Changes.