Adjustable-Rate Mortgage Loan Program Disclosure
Loan #:
Adjustable-Rate Mortgage Loan Program Disclosure
This disclosure describes the features of our adjustable-rate mortgage (ARM) programs. This Early ARM Disclosure Statement is not a contract and does not constitute a commitment to make a loan to you. Ask us for our current interest rate and margin.
How Your Interest Rate and Payment Are Determined ? Your interest rate will be based on an index plus a margin, rounded up to the nearest 0.125 percent. ? Our ARM programs can use one of two rate indexes listed below. The rate index used will be identified at the end of the program name. o If your program name ends in CMT, the interest rate will be based on the weekly average yield on United States Treasury securities adjusted to a constant maturity of one year, as made available/published by the Federal Reserve Board. o If your program name ends in SOFR, the interest rate will be based on the 30-day average secured overnight financing rate (SOFR) index, as made available/published by the Federal Reserve Bank of New York. ? Your interest rate will equal the index rate plus our margin unless your interest rate caps limit the amount of change in the interest rate, as explained below. ? Your initial interest rate is determined by market factors and is not based on the index that is used to make future adjustments. As a result, the interest rate on your loan may increase or decrease on the first change date even if the index remains the same. The initial interest rate will be disclosed to you prior to the closing of your loan. ? Your payment will be based on the interest rate, loan balance, and remaining loan term.
How Your Interest Rate Can Change ? For our ARM programs using the CMT Index, after the initial fixed rate period ends, which varies by program, the first interest rate adjustment will occur. Your interest rate can change every twelve (12) months after that first adjustment. The maximum amount of the initial adjustment will vary by program (see "CMT Index" chart below). All subsequent adjustments after the initial rate adjustment cannot increase or decrease your interest rate by more than 2.000 percentage points. ? For our ARM programs using the SOFR Index, after the initial fixed rate period ends, which varies by program, the first interest rate adjustment will occur. Your interest rate can change every six (6) months after that first adjustment. The maximum amount of the first adjustment will vary by program, (see "SOFR Index" chart below). All subsequent adjustments after the initial rate adjustment cannot increase or decrease your interest rate by more than 1.000 percentage points. ? Applicable to all Programs: o Your interest rate will never be less than the margin.
The initial interest rate change will vary in time and amount, based on your ARM program and the index it uses:
Programs available using the "CMT Index"
Program Name
Portfolio/Conventional 5/1 CMT, Portfolio Int. Only 5/1 CMT, Portfolio Land 5/1 CMT, Portfolio NC Mobile 5/1 CMT Portfolio/Conventional 7/1 CMT, Portfolio Interest Only 7/1 CMT Portfolio Jumbo 5/1 CMT Portfolio Jumbo 7/1 CMT Portfolio Jumbo 10/1 CMT Portfolio Construction 5/1 CMT, Portfolio Constr. Jumbo 5/1 CMT Portfolio Construction 7/1 CMT, Portfolio Constr. Jumbo 7/1 CMT Portfolio Dr Program 5/1 CMT Portfolio Dr Program 7/1 CMT
Months Until 1st Change
60
84 60 84 120 48 72 60 84
Max. 1st Rate Change 2.000%
Max. total Rate Change above Initial Rate
5.000%
5.000% 2.000% 5.000% 5.000% 2.000% 5.000% 6.000% 6.000%
5.000% 5.000% 5.000% 5.000% 5.000% 5.000% 6.000% 6.000%
Page 1 of 3
rev. January 2023
Programs available using the "SOFR Index"*
Months Until Max. 1st
Max. total Rate
Program Name
1st Change
Rate Change Change above Initial Rate
Conforming 5/6 SOFR
60
2.000%
5.000%
Conforming 7/6 SOFR
84
5.000%
5.000%
Conforming 10/6 SOFR
120
5.000%
5.000%
Jumbo 5/6 SOFR
60
2.000%
5.000%
Jumbo 7/6 SOFR
84
5.000%
5.000%
Jumbo 10/6 SOFR
120
5.000%
5.000%
* For SOFR Index Programs, the second number "# / 6" refers to 6 months for subsequent adjustment periods.
How Your Payment Can Change ? Your payment can change every time your interest rate can change for all programs, as explained above. ? For the Portfolio Interest Only ARM programs, the initial fixed rate period will require interest only payments on the
principal balance of the loan. After the initial fixed rate, interest only period expires, the principal balance will be amortized over the remaining loan term, with principal and interest payments due for remainder of the loan. ? You will be notified at least 210 calendar days, but no more than 240 calendar days, before the first payment at the adjusted level is due after the initial interest rate adjustment of the loan. This notice will contain information about the adjustment, including the interest rate, payment amount, and loan balance. ? You will be notified at least 60 calendar days, but no more than 120 calendar days, before the first payment at the adjusted level is due after any subsequent interest rate adjustment resulting in a corresponding payment change. This notice will contain information about the adjustment, including the interest rate, payment amount, and loan balance.
Payment Examples ? "CMT Index" The following examples are based on a $10,000 loan with an initial interest rate that was in effect for the program in December of 2022 and reflect the maximum possible increases in the monthly payment for each program, using the $10,000 loan amount. Your periodic payment may increase or decrease substantially depending on changes in the rate.
Programs w/ "CMT Index"
Term Initial Max. Rate Initial Max.
Max.
Program Name
(Months) Rate *
Payment Payment Payment Year
Portfolio/Conventional 5/1 CMT
360 6.125% 11.125% $60.76 $91.58
8th
Portfolio/Conventional 7/1 CMT
360 6.250% 11.250% $61.57 $91.36
8th
Portfolio Interest Only 5/1** CMT
360 6.125% 11.125% $51.04** $98.27**
8th
Portfolio Interest Only 7/1** CMT
360 6.125% 11.125% $51.04** $100.59**
8th
Portfolio Jumbo 5/1 CMT
360 6.000% 11.000% $59.96 $90.59
8th
Portfolio Jumbo 7/1 CMT
360 6.000% 11.000% $59.96 $89.37
8th
Portfolio Jumbo 10/1 CMT
360 6.125% 11.125% $60.76 $87.38
11th
Portfolio Construction 5/1 CMT
348 6.375% 11.375% $63.11 $93.72
8th
Portfolio Construction 7/1 CMT
348 6.375% 11.375% $63.11 $92.00
8th
Portfolio Construction Jumbo 5/1 CMT
348 6.125% 11.125% $61.50 $91.76
8th
Portfolio Construction Jumbo 7/1 CMT
348 6.125% 11.125% $61.50 $90.03
8th
Portfolio Dr Program 5/1 CMT
360 6.125% 12.125% $60.76 $99.02
6th
Portfolio Dr Program 7/1 CMT
360 6.250% 12.250% $61.57 $97.84
8th
Portfolio Land 5/1 CMT
180 7.500% 12.500% $92.70 $112.81
8th
Portfolio Non-Conforming Mobile 5/1 CMT 240 7.500% 12.500% $80.56 $106.03
8th
* This is an initial rate that we have used recently, your initial rate may be different
** For Portfolio IO programs, the initial payment reflects Interest Only payments. Max payment includes Principal & Interest.
Page 2 of 3
rev. January 2023
Payment Examples ? "SOFR Index" The following examples are based on a $10,000 loan with an initial interest rate that was in effect for the program in December of 2022 and reflect the maximum possible increases in the monthly payment for each program, using the $10,000 loan amount. Your periodic payment may increase or decrease substantially depending on changes in the rate.
Programs w/ "SOFR Index" * Term
Initial Max. Rate
(Months) Rate **
Initial Payment
Max. Payment
Program Name
Conforming 5/6 SOFR
360 6.125% 11.125% $60.76
$91.74
Conforming 7/6 SOFR
360 6.250% 11.250% $61.57
$91.36
Conforming 10/6 SOFR
360 6.125% 11.125% $60.76
$87.38
Jumbo 5/6 SOFR
360 6.125% 11.125% $60.76
$91.74
Jumbo 7/6 SOFR
360 6.000% 11.000% $59.96
$89.37
Jumbo 10/6 SOFR
360 6.000% 11.000% $59.96
$86.38
* For SOFR Index Programs, the second number "# / 6" refers to 6 months for subsequent adjustment periods.
** This is an initial rate that we have used recently, your initial rate may be different
Max. Payment Year
7th 8th 11th 7th 8th 11th
To see what your payments would be for the amount you want to borrow using the example rates above, divide your mortgage amount by $10,000, then multiply the payment by that amount. (For example, the initial monthly payment for a mortgage in the amount of $60,000 in either our Portfolio 5/1 CMT ARM program, or our Conforming 5/6 SOFR ARM program, would be:
[$60,000 / $10,000 = 6] -> [6 x $60.76 = $364.56 per month.)
Prepayment You may pay this ARM loan in whole or part without penalty at any time. Any monthly payment amounts that exceed the regularly scheduled monthly payment due will be applied as detailed in the Adjustable Rate Note.
Demand Feature This loan does not include a demand feature.
Borrower Acknowledgment I/we acknowledge receipt of both this Disclosure and the handbook entitled Consumer Handbook on Adjustable Rate Mortgages at the time required by 12 CFR ? 1026.19(b).
Borrower Name Coborrower Name Loan #:
Date Date
Page 3 of 3
rev. January 2023
................
................
In order to avoid copyright disputes, this page is only a partial summary.
To fulfill the demand for quickly locating and searching documents.
It is intelligent file search solution for home and business.
Related download
- 5 1 adjustable rate mortgage loan program disclosure 2 6
- understanding adjustable rate mortgages presentation
- 5 1 adjustable rate mortgage loan
- alaska adjustable rate note arm 5 1 form 3501 02 word
- you are considering an adjustable rate mortgage
- sofr arms fact sheet freddie mac
- multistate adjustable rate note arm 5 1 form 3501 pdf
- adjustable rate mortgage disclosures table of contents
- adjustable rate mortgage loan program disclosure
- libor transition playbook
Related searches
- adjustable rate mortgage calculator
- adjustable rate mortgage calculator excel
- adjustable rate mortgage calculator free
- adjustable rate mortgage amortization period
- bankrate adjustable rate mortgage calculator
- adjustable rate mortgage excel spreadsheet
- adjustable rate mortgage rates today
- adjustable rate mortgage 7 1
- adjustable rate mortgage arm
- adjustable rate mortgage examples
- adjustable rate mortgage interest rates
- adjustable rate mortgage rates refinance