Can somebody help me understand and figure this out. I have called my Mortgage Company and asked them what the new payment will be and all they say is we will be getting the new rate and payment in the mail about a month before it takes effect. I would like to know now so I can make adjustments for it.

We have an ARM set to adjust for first time in July 08 and every 6 months after that. We are on a 6mth Libor Index Rate. I need help figuring out what my new rate will be on the 1st of July 2008. My rate now is 7.99%. Papers say they will add 5.520% points to the current index, the note holder will then round the results of this addition to the nearest one-eighth of 1 percentage point (0.125%). Subject to the limits in (D) this will be my new interest rate unti the next change date.

(D) Limit on interest rate changes, the interest rate I am required to pay at the first change date will not be greater than 10.90% or less than 7.99% thereafter my interest percentage points will not change more than 1.5% from the rate I have been paying for the preceding month. My interest rate will never be greater than 14.990%. (What the heck does all this mean)!

By the change date we will have approximately $235,000.00 on the Mortgage to pay and 336 months left out of the original 360.

This week the 6 month Libor rate is 2.62. Assuming that the index will be close to that on the date when they figure your change, the bank will add 5.520 to that number and get 8.14. So your new rate should be somewhere between 8.25% and 8.5%.

The monthly principal and interest payment on $235,000 at 8.5% (based on a 30 year payment schedule) is $1807.15.

Keep in mind that these numbers are approximate. The 6 month Libor rate could change between now and the effective date for your change. You can keep track by checking out LIBOR index and other major interest rate indexes (http://www.bankrate.com/brm/ratewatch/other-indices.asp)