ADVERTISING DISCLOSURES

2.75% (APR 3.047%) 5/1 ARM Program

  • Loan is advertised as 5/1 ARM (Adjustable Rate Mortgage) with a 30 year fully amortizing term
  • No pre pay penalty
  • APR is variable and can increase or decrease , so payments may increase or decrease after the initial period
  • After the initial period of the loan, the adjustable (variable) interest rate and payment will adjust every year on a 12 month LIBOR index.
  • The maximum periodic change is 2% in interest rate. The life time cap or increase is 5.5% above the initial interest rate. LIBOR changes with adjustable rate mortgage

Sample payment in disclosure:

Loan amount: $250,000

Rate is 2.75%

Program: 5/1 ARM (fixed or the first 5 years)
Advertised payment: $1038.46 principal and interest for first 60 months on 5/1 ARM

APR 3.047%

Residential properties 1-4 units ONLY