 |
| Conforming Loan - 5/25 Balloon
Monthly
interest and payment rates for this 5/25 balloon loan are calculated as if the
loan is to be repaid over 30 years, but the actual term of the loan is 5 years.
At the end of 5 years, the borrower must either prepay the remainder of the
loan in a lump sum payment or elect to extend the loan term for the remaining 25
years at a new fixed interest rate. The new interest rate is based on the index
(FNMA 30-year fixed rate net yield for 60-day mandatory delivery) plus the
margin of 0.5%. The following conditions must be met to extend the loan: The
borrower must still be the owner-occupant of the property; all payments for
the past 12 months must have been paid on time; there must be no lien on the
property other than the original loan; the new rate cannot exceed the original
rate by 5% or more; and the borrower must request the exercise of this
option in writing 45 days prior to maturity of the loan. The loan is not
assumable and no penalty is assessed for prepayment.
|
Minimum
Loan Amount
| $50,000 |
Maximum Loan
Amount
| $214,600 |
Term
| 5 years (30-year
amortization) |
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.
|
Owner-Occupied |
Second
Home |
Investment |
| Purchase |
90% |
80% |
NA |
| Refinance |
90% |
70% |
NA |
| Cash-Out
Refinance |
60% |
NA |
NA | |
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
Premiums |
| 80.01- 85.00% |
0.32% |
| 85.01- 90.00% |
0.52% |
| 90.01- 95.00% |
0.78% | |
|
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. |
