Fixed vs. Adjustable-Rate Guide checklist
Questions to ask a lender
In brief
Ask each lender to show the adjustable terms in writing, then test them in the simulator.
Last reviewed against the primary sources listed below.
Terms
- What index and margin does this loan use?
- When is the first adjustment, and how often after that?
Caps
- What are the initial, periodic and lifetime caps?
Worst case
- What is the highest payment this loan could reach?
How to use the answers
Enter the terms into the adjustment simulator.