Generally this type pf loan is a commercial loan, and may have a balloon payment too, so you can check on that. As far as asking for the APR goes, the way that it gets calculated on a new loan is meaningless, because all it does is predict the adjustment based on the current index. Seeing as none of us would know what the real index will be in 5 years, it is never going to be accurate.
1. It CAN adjust UP TO 3%
2. Period? Is it 6 months or 1yr period?
3. What is the index?
Is your ARM about to adjust? That is my best guess.
Then it might go DOWN!!!!
Get a copy of your promissory note and call a professional mortgage banker.... they can walk you thru this and make you understand it in minutes.
Best of luck to you!