I checked out Eloan for last few years. they are among low cost, so terms are probably not robbery like most brokers. Read terms carefully. 300K loan for SFH in CA, 800FICO:
30 Year Fixed (30 year loan)
Interest Rate Points MonthlyPayment APR
6.250% 0.564% $1,847 6.344%
Life Cap 12.125%
Index Type One Year Treasury Bill
Current Index Value 4.230%
Margin 2.750%
Periodic Cap 2.000% per 12 months
First Adjustment 60 month(s)
First Adjustment Cap 5.000% (READ THIS!!!!!!!!!!!!)
At the end of the 60 month(s), the rate will adjust to the lower of:
1. The index plus the margin of 2.750%,
2. The previous rate plus 5.000%, or
3. The life cap of 12.125%.
the 1 year CMT has dropped from 5% to almost 4% today
so anybody resetting today would have a rate of 6.75%, not 5 or 6% becuase of the first adjustment cap of 5%. well 6.75% is a heck of a lot better than 7.75% rate in Jan 07, but resetting wont stop the foreclosures, just slow the pain for marginals.
