Can a mortgages co raise your interest 7 points in one year, with 2/2 arm? Now paying 14.50

Most adjustable mortgages are based on the LIBOR index which has risen dramatically over the last few years. However, you need to look at you closing papers because there is normally a cap on the amount of interest increase. I would assume however, that the interest rate increase is legal under the terms of your promissory note. I would look for another lender if at all possilbe. Even people with the worst credit can get a loan for around 10% or so.

Can they, of course they can if that amount of raise is written into the terms of the mortgage.
This is why so many homes are not in defaut and being foreclosed, and who so many sub prime lenders have went bankrupt

So get your loan papers out and see how the raise in interest is allowed and figured