How is the new Interest Rate determined?
The new Interest Rate on CalHFA ARM loans are determined by adding the available index percentage on the Index Day to the Margin (1.25%) and rounded to the nearest one-eighth of one percent. Because CalHFA has only four change dates per year, the Index Day is limited to 4 days during the year, March 2, June 1, September 1, and December 2. Your Index Day will be approximately two months prior to your Payment Change date. The Index Day is always 30 days prior to the Interest or Rate Change Date, which is one month prior to the Payment Change Date.