I have a home in California and have been with GMAC for years with a 1 loan for 30 years. My loan has recently been acquired by OCWEN which...

Question

I have a home in California and have been with GMAC for years with a 1% loan for 30 years. My loan has recently been acquired by OCWEN which sent me a notice recently that as of June 1 my interest rate will now be 2%. Can they do that, or does my GMAC arrangement have priority and should remain in place?

Thank you.

[email protected]/* */

Answer

It depends on the terms of the promissory note you signed. If you have an adjustable rate, then yes, they can change the interest rate. If you have a 30 year fixed, then no, they cannot.