IS YOUR MORTGAGE PAYMENT CORRECT?INVESTIGATE YOUR RATE NOW AUDIT BANK RATE

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How do miscalculations occur?

In a number of ways, which include improper rounding of a mortgage index, making the adjustment in the payment based on the wrong date or using an index different from the one in the loan agreement (which can happen when a loan is sold to a bank in a different federal reserve district).

What causes these errors?

Since calculation of rate changes in ARM's is complex, errors can occur in a variety of ways. For example, the borrower may have been overcharged if the payment was based on:

* Selection of the wrong index date, incorrect type of index value.
* An incorrect rounding equation, such as rounding up instead of rounding to the nearest one-eighth of one percent.
* An incorrect monthly payment factor despite a correct payment rate.
* Incorrect math despite the correct index selection.
* An incorrect loan balance
* Mistyped data, faulty computer software, or an ambiguously written loan note

Can a small miscalculation have a huge impact on my monthly payment and loan balance?

Absolutely! A simple miscalculation of just one percent in the index value, coupled with incorrect rounding can easily add $600 a year to an $80,000 mortgage. Average errors in individual mortgages range from $700 to $1,400, and any error can be compounded dramatically with each subsequent adjustment.

Why can't I audit my own mortgage?

While errors frequently do occur, it is extremely difficult for most homeowners to audit their own loans. First consumers do not fully understand the mechanics or structure of adjustable rate mortgages. Second most consumers don't understand the mathematical concept of amortization. And third, most consumers do not have access to the thousands of index values that form the starting point in any audit of an adjustable rate mortgage.

What if an error is found?

If the loan balance on our mortgage audit report is lower than what the lender has computed then the lender owes the homeowner a refund for the difference.

What other reasons should concern me about my adjustable rate mortgage?

There are other reasons to be concerned with ARM errors. In particular, if the loan has any of the following features there is cause for alarm:

* The loan was sold or transferred to another company
* A rider, handwritten changes or irregularities exist in the note
* An unusual index or interest rate is determined by complex calculations
* The loan balance has not decreased significantly
* The loan was originated by an institution that has been dissolved or merged into another institution