7/1 Adjustable Rate

Maximum loan amount: $417,000

Rates change annually after 7 years

Maximum loan to value ratio:
Purchase
• 95%*
Refinance
• 95% - No cash
• 90% - Cash

Term:
• 30 years

Closing Costs:
• Estimated at 3% of the amount you borrow for attorney fees, title insurance, mortgage, recording fees, .25% commitment fee, etc.
• We will require funding of an escrow account for the payment of Real Estate Taxes, Homeowners insurance, Flood Insurance (if applicable), and Private Mortgage Insurance (if applicable).

Annual Adjustment Cap:
• Rate fixed for the first 7 years.
• After 7 years rate can go up or down 5% at the first adjustment.
• Following the first adjustment rate can go up or down 2% each year
• Index = 1 year T-Bill + 3%
• Rounded to the nearest 1/8 of 1%

Lifetime Adjustment Cap:
• 5%
• Rate will not be greater than 5% over the initial interest rate.

Rate Lock-Ins:
• Closing rate is set 48 hours prior to closing if a lock-in has not been selected
• 30 day rate lock: ½ point, non refundable fee
• 60 day rate lock: 1 point, non-refundable fee
• 90 day rate lock: 1 ½ points, non-refundable fee

Rate Buy-Downs
• 1 Point = ¼% Rate Reduction
• 2 Points = ½% Rate Reduction

* Rate will be .25% higher than the current posted rate for purchases and refinances with Loan to Value Ratio over 90%