sounds like what is described in the fact sheet, they lower your rate for 5 years then it goes back to the initial rate at that time, only it is fixed. I would call
CW and discuss it with them before you sign it, I would also call naca, and let them know you have an offer from
CW.
Subprime 2-, 3- 5-, 7- and 10-Year Hybrid ARM borrowers will receive an unsolicited extension/restoration of the introductory rate for five years and an invitation to contact Countrywide for additional relief if affordability concerns persist. Borrowers who cannot afford the introductory rate will be considered on a streamlined basis for a five-year interest rate reduction to as low as 3.5% (based on the affordability equation) and a conversion to a fixed-rate mortgage at the end of five years
I can understand your frustration and fear. I have been dealing with naca also and am not getting anywhere with them either. my loan was submitted by naca 60 days ago and naca still doesn't have an update or any idea if
CW has even looked at their proposal. Its very scary, I want to keep my home, and would be inclined to take the lower rate for the five years, hopefully by then the economy and home values will be better to refinance. But that is just my opinion. My prayers are with you, let me know how it goes.