Well, I got my letter today with the new ARM rate for the next year.
And…. I was right! The value of the index was .39% plus 2.75% (my margin)… well, I think that equals 3.14. According to this letter, the new interest rate is 3.125%, so this time it has rounded down.
Last time it was .7+2.75=3.45, so my rate rounded up to 3.5. That’s the nearest .125%
Anyway, this drops my mortgage payment by $38.65. I think I’ll just keep my regular payment :-).