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ARMS || 1 month MTA
(Monthly Treasury Averaged)
COFI
(Cost of Funds Index)
Caps/Margins
Periodic Cap: none
Payment Change Cap: 7.50%,
except at re-cast every 5 years or when principal balance exceeds 110%
Life Cap: 9.95%
Margin: Determined on the daily rate sheet
FOUR Payment Options –
Principal & interest, based on the discounted start rate
and may result in negative amortization. If the borrower chooses this option and the negative limit reaches 110% of the original loan amount the payment will immediately fully amortize over the remaining term, regardless of any payment caps.
Interest only which varies monthly based on the fully indexed rate after the initial fixed period.
Principal and interest to amortize the loan over 30 years
Principal and interest to amortize the loan over 15 years
Important Things to Note:
Full documentation only
Eligible Properties are limited to:
- Single family detached
- Single family attached
- Condo
PUD
Primary residence
SPECIFIC DISCLOSURES REQUIRED FOR THIS LOAN - RELATIVE TO NEGATIVE AMORTIZATION AND PAYMENT CHANGES.
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