The interest rate on this loan is the sum of the LIBOR index plus a margin rounded to the nearest one-eighth of one percentage point, (0.125%). The margin will not change throughout the term of the loan. the index value will be adjusted every month, which will cause the interest rate to be adjusted every month.

6 MONTH ARM - INTEREST ONLY OPTION

The interest rate on this loan is the sum of the LIBOR index plus a margin rounded to the nearest one-eighth of one percentage point, (0.125%). The margin will not change throughout the term of the loan. the index value will be adjusted every six months, which will cause the interest rate to be adjusted every six months.

5 YEAR ARM - INTEREST ONLY OPTION

The interest rate is fixed for the first five years of the loan term. Years 6 through 10 are interest only payments but the interest rate changes every 6 months, based upon the LIBOR index.  In years 11 through 30 the interest rate is adjusted every year to the sum of the LIBOR index plus a margin rounded to the nearest one-eighth of one percentage point, (0.125%). The margin will not change throughout the term of the loan. During the first ten years of the loan, the borrower is offered an interest only payment option and a principal and interest payment option. Years 11 through 30 require a principal and interest payment.

MTA - Option ARM

This MTA ( Monthly Treasury Average Index ) based Adjustable Rate Mortgage offers the borrower several payment options. These options include a minimum payment and a principal and interest payment that is adjusted monthly. Under certain conditions the borrower may be offered an interest only payment option.

The interest rate on the loan is the sum of the MTA index plus a margin. The margin will not change throughout the term of the loan. The index value will be adjusted monthly, which will cause the interest rate to be adjusted monthly.

The minimum payment option is adjusted annually with a payment cap adjustment of 7.5% of the prior years payment. Every five years the payment cap is suspended in order to insure that the loan will be paid off at the end of the loan term. Because the interest rate will be adjusted monthly, the minmum payment may or may not cover the amount of interest being charged. If the minimum payment does not cover the amount of interest being charged, paying the minimum will result in negitive amortization. This simply means that the balance on your loan will increase in the amount of the difference between the minimum payment and the interest charge on the loan that month.

The principal and interest payment option is available every month. Since the interest rate is adjusted monthly, this payment is adjusted accordingly. This payment option will pay the loan off based on a 30 year amortization.

The interest only option is not available every month. This option is only available when the minimum payment does not cover all of the interest charge that month.

COFI - Option ARM

This COFI (Cost Of Funds Index) based Adjustable Rate Mortgage offers the borrower several payment options. These options include a minimum payment and a principal and interest payment that is adjusted monthly. Under certain conditions the borrower may be offered an interest only payment option.

The interest rate on the loan is the sum of the COFI index plus a margin. The margin will not change throughout the term of the loan. The index value will be adjusted monthly, which will cause the interest rate to be adjusted monthly.

The minimum payment option is adjusted annually with a payment cap adjustment of 7.5% of the prior years payment. Every five years the payment cap is suspended in order to insure that the loan will be paid off at the end of the loan term. Because the interest rate will be adjusted monthly, the minmum payment may or may not cover the amount of interest being charged. If the minimum payment does not cover the amount of interest being charged, paying the minimum will result in negitive amortization. This simply means that the balance on your loan will increase in the amount of the difference between the minimum payment and the interest charge on the loan that month.

The principal and interest payment option is available every month. Since the interest rate is adjusted monthly, this payment is adjusted accordingly. This payment option will pay the loan off based on a 30 year amortization.

The interest only option is not available every month. This option is only available when the minimum payment does not cover all of the interest charge that month.

COSI - Option ARM

This COSI (Cost Of Savings Index) based Adjustable Rate Mortgage offers the borrower several payment options. These options include a minimum payment and a principal and interest payment that is adjusted monthly. Under certain conditions the borrower may be offered an interest only payment option.

The interest rate on the loan is the sum of the COSI index plus a margin. The margin will not change throughout the term of the loan. The index value will be adjusted monthly, which will cause the interest rate to be adjusted monthly.

The minimum payment option is adjusted annually with a payment cap adjustment of 7.5% of the prior years payment. Every five years the payment cap is suspended in order to insure that the loan will be paid off at the end of the loan term. Because the interest rate will be adjusted monthly, the minmum payment may or may not cover the amount of interest being charged. If the minimum payment does not cover the amount of interest being charged, paying the minimum will result in negitive amortization. This simply means that the balance on your loan will increase in the amount of the difference between the minimum payment and the interest charge on the loan that month.

The principal and interest payment option is available every month. Since the interest rate is adjusted monthly, this payment is adjusted accordingly. This payment option will pay the loan off based on a 30 year amortization.

The interest only option is not available every month. This option is only available when the minimum payment does not cover all of the interest charge that month.

10/30 Year Interest Only Arm

* The initial payments are interest only for the first 10 years.
* After the completion of the interest only period, the unpaid balance is fully amortized over the remaining term of the loan.
* The Borrower may make voluntary principal payments during the interest only period. The required interest only payment will be reduced to reflect the decrease in the principal unpaid balance.