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| Conforming Loan - 7/1 Adjustable Rate Mortgage Loan
The monthly interest
rate for this 7/1 ARM is fixed for an initial term of 7 years. Each year after
that term, the rate will be adjusted and calculated on the basis of the average
yield on U.S. Treasury securities adjusted to a constant maturity of one year,
plus an additional fixed margin of 2.75%. The amount of rate adjustment is
limited by caps to no more than 2% at the first adjustment, 2% annually
thereafter, and 5% for the life of the loan. The loan may be converted to a
fixed interest rate mortgage; it is assumable after the initial 7-year period
unless the conversion option is exercised; and no penalty is assessed for
prepayment. |
Minimum
Loan Amount
| $50,000 |
Term
| 30 years |
Eligible
Properties
| Single family
one-unit residences (call for information on 2-4 unit properties), including
FNMA-approved condominiums, dwellings in Planned Unit Developments, and
townhouse projects. |
Maximum Loan-To-Value
| Loan-to-Value is computed as the
loan amount divided by the purchase price or the appraised value, whichever is
less. If you're refinancing a loan which has been in effect for more than a
year, the appraised value must be used.
Maximum
Loan Amount
(Purchase or Refinance) |
LTV |
Owner-
Occupied |
Second
Home |
Investment |
| 95% |
$300,000 |
$250,000 |
Not Available |
| 90% |
$400,000 |
$300,000 |
| 80% |
$600,000 |
$350,000 |
| 75% |
$700,000 |
$400,000 |
| 70% |
$1,000,000 |
$450,000 |
| 65% |
Not Available |
$500,000 |
Maximum Loan
Amount
(Refinance with Cash-Out) |
75% |
$350,000 |
Not Available |
Not Available |
| 70% |
$500,000 |
| 65% |
$650,000 |
| 60% |
$1,000,000 |
| 50% |
$1,000,000 | |
Mortgage Insurance Premiums
| The premiums below are the total
amount you'll pay in any year. You'll pay the amount on a monthly basis, and
the payment will be collected along with your monthly principal and interest,
taxes and insurance. Please note that the amounts below are quoted for a fixed
rate loan on a property which would be your primary residence. Somewhat
different rates may apply if your loan is on a second home or has a temporary
buy-down or adjustable rate.
| LTV |
Annual
Premium |
| 80.01- 85.00% |
0.32% |
| 85.01- 90.00% |
0.52% |
| 90.01- 95.00% |
0.78% | |
Subordinate
Financing
| You may be able to
obtain a loan with secondary financing (other loans on the property which have a
subordinate lein position) if the maximum loan to value for the first mortgage
does not exceed 75%, and the total loan to value of all loans does not exceed
90%. Certain restrictions apply. |
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Please Note:
The
program guidelines presented here are general, and may not apply to your
particular situation. Program costs and requirements may be different based on
down payment, loan amount, occupancy, property location and other factors.
Please contact a mortgage consultant for a customized analysis. Exceptions to
these guidelines may also be available on a case by case basis. |
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