What Information Must Be Included in the Initial and Ongoing Interest Rate Adjustment Notices?

Both the initial and the ongoing interest rate adjustment notices must include:

• The date of disclosure or notice

• An explanation referring to the loan being adjustable and that the interest may change during the term of the loan

• The effective date of the adjustment and future adjustments, or any other changes to the loan terms on such date

• The current and new interest rates

• The current and new payments, including the date when the first payment is due

• An explanation of how the interest rate is to be determined, including the formula used in making the adjustment

• An explanation of the limits on the interest rate or payment increases

• An explanation of how the new payment amount is determined

• The prepayment penalty and its conditions

• Contact information of the servicer

• A brief explanation of the alternatives to paying the loan at the new rate (refinancing, selling the property, renegotiating, forbearance)

• Housing counselling information