There are two different kinds of products, fixed rate products, where the rate never changes and all other programs, which are known as adjustable rate mortgages ("ARMS"), where the rate adjusts according to a specified time frame.

An ARM defines an "index" (the financial foundation on which the rate is based on; e.g., a one-year treasury bill as published by the Wall Street Journal) and a "margin" (the lender's spread). The index when added to the margin provide the "fully indexed rate". An ARM usually provides a low introductory rate before the rate may be adjusted. Those later rate adjustments are determined by adding the specified margin to whatever the index is at the time of the rate adjustment subject to the "caps" (limits that a rate may change on any change date) and subject to any rounding requirements (usually, rounding up to the

nearest .125%). The indices, margins and caps specified below are only approximate. The actual amounts depend upon the parameters of particular programs.

30 years fixed rate program: Term of the loan is 30 years (360 months). Interest rate is fixed for the entire life of the loan. Amortized over 30 years

15 years fixed rate program: Term of the loan is 15 years (180 months). Interest rate is fixed for the entire life of the loan. Amortized over 15 years

10/1 ARM: Term of the loan is 30 years (15 years also available). Interest rate is fixed for 10 years and then will adjust every 1 year thereafter about 2% per year. It includes a margin of 2.75% and a lifetime cap of 6%. Amortized over 30 years.

7/1 ARM: Term of the loan is 30 years (15 years and 40 year terms available). Interest rate is fixed for 7 years and then will adjust every 1 year thereafter about 2% per year. It includes a margin of 2.75% and a lifetime cap of 6%. Amortized over the life of the loan.

5/1 ARM: Term of the loan is 30 years (15 years and 40 year terms available). Interest rate is fixed for 5 years and then will adjust every 1 year thereafter about 2% per year. It includes a margin of 2.75% and a lifetime cap of 6%. Amortized over the life of the loan.

3/1 ARM: Term of the loan is 30 years (15 years and 40 year terms available). Interest rate is fixed for 3 years and then will adjust every 1 year thereafter about 2% per year. It includes a margin of 2.75% and a lifetime cap of 6%. Amortized over the life of the loan.

1/1 ARM: Term of the loan is 30 years (15 years and 40 year terms available). Interest rate is fixed for 1 year and hen will adjust every 1 year thereafter about 2% per year. It includes a margin of 2.75% and a lifetime cap of 6 %. Amortized over the life of the loan.

Monthly ARM: Contact us for details.

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