Why did I receive an adjustable-rate mortgage rate-change notice?

The CFPB says that if you have an adjustable-rate mortgage, the servicer generally must send an estimate of the coming payment. The first time the rate resets, the lender must send that estimate seven to eight months before the first payment at the new rate is due. After a reset has already occurred, notice generally arrives two to four months before the first changed payment if the next reset will change the amount due.

The advance notice is meant to give time to budget or look at another loan. It needs to show the current and new rates, or an estimate where appropriate, the current and new payment amounts, and the date the first new payment is due. The first-reset packet must also describe options if the new rate is not affordable and how to reach a HUD-approved housing counseling agency.

Possible next steps the Bureau lists include budgeting for the new amount, shopping for a different loan, and talking with a HUD-approved counselor. This FAQ does not recommend a particular loan or say you must refinance.