There is always room for learning….know the terms, even if you think you know…

So get this, I thought I had my ARM thing all wrapped up checking and re-checking with Wells Fargo to make sure I knew what I was all signed up for. They said last week that I would be locked in the 20th of March. So I watched and enjoyed as the 1 yr US treasury yield dropped from .70 to .60 last week, I was happy as a clam, since I thought they were using the actual March 20th number…..WRONG….they will get you every time, which reinforces that we need to make sure you check things carefully, they got me….not too badly, but it wasn’t clear until I questioned, fought and was then explained the terms, then going back to my loan papers, it was there in black and white….frustrating but true. They go back 45 days, from the calculation date, then they use the most updated index published on that date, so technically they were using the week before numbers averaged that are then published last Monday (16th) because technically my re-calculate date landed on the 17th. Ugg….even the people at Wells Fargo that I spoke to last week didn’t know what they were talking about. I was transferred over to another department today, after I rattled off all the information that I had regarding what my rate should have been, he explained what the terms really meant. And alas, you can’t forget they like to round UP to the closest 1/8th. I know I shouldn’t complain I am going from a 4.5% to a 3.5%, but according to what I was looking at I thought I had a 3.35%, which was even better. So it goes to show you, those terms can be unbelievably tricky….even Wells Fargo employees and a Financial Organizer can get confused, but now I know and will be even more aware to make sure the terms are read and clearly understood.

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~ by debt2dreams on March 24, 2009.

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