The examples provided below assume the purpose of the loan is to purchase an existing single family home to be used as a primary residence. Taxes and insurance not included, therefore the actual payment obligation will be greater. Your actual rate may be higher depending on your actual credit history, loan purpose, loan amount, down payment, and collateral type. Payment example is for educational purposes only and may not reflect our current or actual loan rate offers or available percentage rates.
Fixed Rate Mortgage: As an example, for a 30 year mortgage in the amount of $250,000 at a APR of 6.471%, the monthly principal and interest payment, exclusive of any escrow for taxes or insurance, would be $1,560.00.
Adjustable Rate Mortgage (ARM): As an example, for a 7/1 ARM with a 30 year term in the amount of $250,000 at an APR of 7.515%, the monthly principal and interest payment, exclusive of any escrow for taxes or insurance, would be $1,642.32 for the first 7 years and would be adjusted every 12 months thereafter, according to the market index.
IMPORTANT INFORMATION FOR ADJUSTABLE RATE MORTGAGES (ARMs)
Adjustable-rate mortgages are variable, and your annual percentage rate may increase or decrease after the original fixed rate period.
Interest Rate Adjustments. Your interest rate under an ARM is fixed for the initial 3, 5, or 7 years, then adjusts every 12 months thereafter based upon an index, plus a margin. Your interest rate cannot increase or decrease more than 2.00 percentage points at first adjustment and 2.00 percentage points per subsequent adjustment from the initial interest rate, excluding any buydown. Your interest rate will never be greater than 6.00 percentage points above the initial interest rate.
How Your Payments Are Determined. Your initial monthly payment of principal and interest will be determined based on the interest rate, loan term, and balance when your loan is closed. If your interest rate changes, your payment will be adjusted to fully amortize the loan by the end of the loan term.
Frequency of Payment Changes. Based on increases or decreases in the index, payment amounts under an ARM loan can increase or decrease substantially afterthe initial fixed period and every 12 months thereafter. However, your monthly payment amount could change more frequently if there is a change in the taxes, assessments, insurance premiums, or other charges required to be made into an escrow or impound account.
Adjustment Notices. You will be notified at least annually if interest rate changes occur. When an interest rate change will also involve a change in your monthly payment, you will be notified in writing (at least 60 calendar days, but not more than 120 calendar days) before the first payment at the adjusted level is due. The notice will indicate the adjusted payment amount, interest rate, Index value, and the outstanding loan balance at the time.
Rates and/or points are subject to change at any time until you apply for a loan and “lock-in” a rate. Your actual rate and/or points may be different, as many factors go into providing you with a mortgage loan.
Your actual rate and/or points may be different, as many factors go into providing you with a mortgage loan. Rates and points vary widely for loan amounts above $726,200** (see below), and/or for investment property loans.
**Jumbo rates are for loan amounts exceeding $726,200 ($1,089,300 in Alaska, Hawaii, Guam and the U.S. Virgin Islands).
Taxes and insurance not included, therefore the actual payment obligation will be greater. Your actual rate may be higher depending on your actual credit history, loan purpose, loan amount, down payment, and collateral type.
All home lending products are subject to credit and property approval. Rates, program terms and conditions are subject to change without notice. Other restrictions and limitations apply.