Disclosures
30-Year Fixed Loan
- Annual Percentage Rate (APR) calculations are based on a $200,000, 30-year fixed loan and assume the following: a single-family, detached, owner-occupied primary residence: a loan to value ratio of less than 60%; an excellent credit score and full documentation provided to process the loan
- Rate and Annual Percentage Rate (APR) applies to rate and term refinances only. No cash out
- Rate and Annual Percentage Rate (APR) shown are subject to change without notice, and may be unavailable at commitment or closing
- Third party fees may apply
- Fees may vary by state
- Subject to underwriter approval; not all applicants will be approved
- Restrictions may apply
- Not an offer to enter into a rate lock agreement
20-Year Fixed Loan
- Annual Percentage Rate (APR) calculations are based on a $200,000, 20-year fixed loan and assume the following: a single-family, detached, owner-occupied primary residence: a loan to value ratio of less than 60%; an excellent credit score and full documentation provided to process the loan
- Rate and Annual Percentage Rate (APR) applies to rate and term refinances only. No cash out
- Rate and Annual Percentage Rate (APR) shown are subject to change without notice, and may be unavailable at commitment or closing
- Third party fees may apply
- Fees may vary by state
- Subject to underwriter approval; not all applicants will be approved
- Restrictions may apply
- Not an offer to enter into a rate lock agreement
15-Year Fixed Loan
- Annual Percentage Rate (APR) calculations are based on a $200,000, 15-year fixed loan and assume the following: a single-family, detached, owner-occupied primary residence: a loan to value ratio of less than 60%; an excellent credit score and full documentation provided to process the loan
- Rate and Annual Percentage Rate (APR) applies to rate and term refinances only. No cash out
- Rate and Annual Percentage Rate (APR) shown are subject to change without notice, and may be unavailable at commitment or closing
- Third party fees may apply
- Fees may vary by state
- Subject to underwriter approval; not all applicants will be approved
- Restrictions may apply
- Not an offer to enter into a rate lock agreement
10-Year Fixed Loan
- Annual Percentage Rate (APR) calculations are based on a $200,000, 10-year fixed loan and assume the following: a single-family, detached, owner-occupied primary residence: a loan to value ratio of less than 60%; an excellent credit score and full documentation provided to process the loan
- Rate and Annual Percentage Rate (APR) applies to rate and term refinances only. No cash out
- Rate and Annual Percentage Rate (APR) shown are subject to change without notice, and may be unavailable at commitment or closing. Third party fees may apply.
- Fees may vary by state
- Subject to underwriter approval; not all applicants will be approved
- Restrictions may apply
- Not an offer to enter into a rate lock agreement
5/1-Year Variable Rate Loan
- Annual Percentage Rate (APR) calculations are based on a $200,000, 5 year adjustable loan and assume the following: a single-family, detached, owner-occupied primary residence; a loan-to-value ratio of less than 60%; an excellent credit score; and full documentation provided to process the loan
- Rate and Annual Percentage Rate (APR) applies to rate and term refinances only. No cash out
- Loan amortized over 30 years
- Rate and Annual Percentage Rate (APR) shown are subject to change without notice, and may be unavailable at commitment or closing
- Rates may increase over the life of the loan
- Third party fees may apply
- Fees may vary by state
- Subject to underwriter approval; not all applicants will be approved
- Restrictions may apply
- Not an offer to enter into a rate lock agreement
- The interest rate can change after an initial period of sixty (60) months and every twelve (12) months thereafter during the term of the loan
- After the initial sixty (60) month period, the interest rate will be determined by adding the index, which is based off the LIBOR, to the preset margin
FHA Loan
- Annual Percentage Rate (APR) calculations are based on a $200,000, 30-year fixed loan and assume the following: a single-family, detached, owner-occupied primary residence; a loan-to-value ratio of less than 60%; an excellent credit score; and full documentation provided to process the loan
- Rate and Annual Percentage Rate (APR) applies to rate and term refinances only. No cash out
- Loan amortized over 30 years
- Rate and Annual Percentage Rate (APR) shown are subject to change without notice, and may be unavailable at commitment or closing
- Rates may increase over the life of the loan
- Third party fees may apply
- Fees may vary by state
- Subject to underwriter approval; not all applicants will be approved
- Restrictions may apply
- Not an offer to enter into a rate lock agreement
Assumptions Reverse (HECM) Loan
The purpose of this summary is to give the borrower an idea of the costs associated with an adjustable rate reverse mortgage loan. These terms and conditions of examples provided are randomly picked and do not relate to any borrower’s specific loan.
Loan / Appreciation Example:
- One cannot calculate the Annual Percentage Rate (APR) of an Adjustable Rate line of credit, as the Annual Percentage Rate (APR) is based on cash flow, and the untouched line of credit does not generate a cash flow
- Assume property appreciations of 0%, 4%, 8% and the disclosure periods of 2 years
- A loan has a balance of $100,000 after 2 years and the property value is $150,000 (0%), $160,000 (4%), or $170,000 (8%). In this case the property value has no implication on the Annual Percentage Rate (APR), as the borrower will have to pay back the loan balance.
- However if for instance after 12 years the loan balance is $200,000 and the property value is $150,000 (0%), $190,000 (4%) or $240,000 (8%), then in the 0% scenario, all the borrower owes is $150,000 and not the full loan balance as in the 8% scenario, hence in this case the APR (Annual Percentage Rate) is lower.
Loan Term/ Example:
| Disclosures: | |
| Borrower # 1 Birthdate: | 01/01/1950 |
| Borrower # 2 Birthdate: | 02/05/1950 |
| Estimated value of home: | $150,000 |
| Mortgages and liens against home: | $20,000 |
| Home Equity Conversion Mortgage (HECM) | LIBOR Adjustable Rate |
|---|---|
| Margin | 3.50% |
| Initial Rate | 3.669% |
| APR | Cannot be determinet; based on cash flow elected |
| Available Loan | $53,695 |
| Mortgages or Liens | $20,000 |
| Cash on Line of Credit (LOC) during 1st year | $33,659 |
| Total Line of Credit (LOC) or: | $33,659 |
| Monthly Income | $225 |
