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Are all adjustable rate mortgage loans higher priced mortgage loans?

April 26, 2017adjustable rate mortgage Loans mortgage loans

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Are all adjustable rate mortgage loans higher priced mortgage loans?

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No. Adjustable rates do not automatically make a loan a higher priced mortgage loan. Higher priced mortgage loans are either “rate spread home loans” that must be reported under the law, loans that permits the deferral or principal or interest (such as an interest-only 2/28 ARM or 3/27 ARM), or high-rate high-fee loans. Please note that the definition of “rate spread home loan” in § 8-103(1-A)(V) has been amended by “An Act to Conform State Mortgage Laws with Federal Laws” to reflect the new rate thresholds, using the “average price offer rate,” effective October 1, 2009.