AC Star Funding - Conforming 7/23 Year Balloon

Conforming Loan - 7/23 Year Balloon

Monthly interest and payment rates for this 7/23 balloon loan are calculated as if the loan is to be repaid over 30 years, but the actual term of the loan is 7 years. At the end of 7 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 23 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
7 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%	NA	NA
Refinance	90%	NA	NA
Cash-Out Refinance	65%	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.