How is a New Payment Calculated on an ARM Loan after its Rate Resets?

How is a New Payment Calculated on an ARM Loan after its Rate Resets?

Principal and Interest (New Payment) calculation with rate change

The new payment amount is calculated based on the current principal balance amortized forward to the date the rate was changed and the remaining term using the AmTerm (amortization term), FirstDueDate, and the new rate.
 

Environment:

Servicing Director

ArticleNumber:

000055339

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