# Mortgage Rates Disclosures

**Interest-Only Products**

The benefit of certain mortgage options may vary depending on market conditions, your financial situation and other circumstances. When the principal and interest payment period commences, monthly payments will be higher. The principal balance will not be reduced during the period that interest-only payments are made. Interest payments are calculated based on the outstanding principal balance. A client will pay more interest over the life of the loan if they choose to make interest only payments exclusively than they would under a traditional loan with the same interest rate featuring principal and interest payments. When your interest-only period ends, your monthly mortgage payment will be recalculated to include full principal repayment over the remaining years left on the loan. Your payment may rise significantly based on the shorter remaining term and if you have an upward rate adjustment on an adjustable rate mortgage. During the interest-only period, without making principal payments towards your outstanding loan balance, home price appreciation is the only way your equity will grow. The equity in your home is the difference between its market value and the amount owed on loans secured by the property. There is also a risk that, by not paying down the balance of your loan, you may be in a situation where you owe more on your property than you could sell it for if your home value declines.

**5/1 Adjustable Rate Conforming Mortgage**

A $180,000 5/1 adjustable rate mortgage with an initial rate of 3.000% and an annual percentage rate of 3.180% would have 60 estimated monthly principal and interest payments of $758.89. The maximum amount that the interest rate can rise under this program is 5 percentage points, to 8.000%. The monthly payment could rise from $758.89 to $1,222.88 in the eighth year. If an escrow account is required or requested, the actual monthly payments will also include amounts for taxes and homeowners insurance. Down payment used in this example is 20%.

**5/1 Adjustable Rate Jumbo Mortgage**

A $500,000 5/1 adjustable rate jumbo mortgage with an initial rate of 3.000% and an annual percentage rate of 3.116% would have 60 estimated monthly principal and interest payments of $2,108.03. The maximum amount that the interest rate can rise under this program is 5 percentage points, to 8.000%. The monthly payment could rise from $2,108.03 to $3,396.88 in the eighth year. If an escrow account is required or requested, the actual monthly payments will also include amounts for taxes and homeowners insurance. Down payment used in this example is 20%.

**5/1 Adjustable Rate Interest-Only Conforming Mortgage**

A $180,000 5/1 adjustable rate mortgage with interest only payments and an initial rate of 4.375% and an annual percentage rate of 5.079% would have 60 estimated interest only payments of $656.25. The maximum amount that the interest rate can rise under this program is 5 percentage points, to 9.375%. The monthly payment could rise from $656.25 to $1,544.00 in the eighth year. If an escrow account is required or requested, the actual monthly payments will also include amounts for taxes and homeowners insurance. Down payment used in this example is 20%.

**5/1 Adjustable Rate Interest-Only Jumbo Mortgage**

A $500,000 5/1 adjustable rate mortgage interest only with an initial rate of 4.000% and an annual percentage rate of 4.9852% would have 60 estimated monthly interest only payments of $1,666.67. The maximum amount that the interest rate can rise under this program is 5 percentage points, to 9.000%. The monthly payment could rise from $1,666.67 to $4,159.00 in the eighth year. If an escrow account is required or requested, the actual monthly payments will also include amounts for taxes and homeowners insurance. Down payment used in this example is 20%.

**7/1 Adjustable Rate Conforming Mortgage**

A $180,000 7/1 adjustable rate mortgage with an initial rate of 3.125% and an annual percentage rate of 3.223% would have 84 estimated monthly principal and interest payments of $771.08. The maximum amount that the interest rate can rise under this program is 5 percentage points, to 8.125%. The monthly payment could rise from $771.08 to $1,202.86 in the tenth year. If an escrow account is required or requested, the actual monthly payments will also include amounts for taxes and homeowners insurance. Down payment used in this example is 20%.

**7/1 Adjustable Rate Jumbo Mortgage**

A $500,000 7/1 adjustable rate jumbo mortgage with an initial rate of 3.125% and an annual percentage rate of 3.160% would have 84 estimated monthly principal and interest payments of $2,141.88. The maximum amount that the interest rate can rise under this program is 5 percentage points, to 8.125%. The monthly payment could rise from $2,141.88 to $3,341.27 in the tenth year. If an escrow account is required or requested, the actual monthly payments will also include amounts for taxes and homeowners insurance. Down payment used in this example is 20%.

**7/1 Adjustable Rate Interest-Only Conforming Mortgage**

A $280,000 7/1 adjustable rate mortgage with interest only payments and an initial rate of 4.125% and an annual percentage rate of 5.183% would have 84 estimated interest only payments of $962.50. The maximum amount that the interest rate can rise under this program is 5 percentage points, to 9.125%. The monthly payment could rise from $962.50 to $2,407.00 in the tenth year. If an escrow account is required or requested, the actual monthly payments will also include amounts for taxes and homeowners insurance. Down payment used in this example is 20%.

**7/1 Adjustable Rate Interest-Only Jumbo Mortgage**

A $500,000 7/1 adjustable rate interest only mortgage with an initial rate of 3.500% and an annual percentage rate of 4.525% would have 84 estimated monthly interest only payments of $1,458.33. The maximum amount that the interest rate can rise under this program is 5 percentage points, to 8.500%. The monthly payment could rise from $1,458.33 to $4,089.00 in the tenth year. If an escrow account is required or requested, the actual monthly payments will also include amounts for taxes and homeowners insurance. Down payment used in this example is 20%.

**7/1 Adjustable Rate Construction-Perm Mortgage**

A $180,000 7/1 adjustable rate mortgage with an initial rate of 3.750% and an annual percentage rate of 4.530% and a 24 month construction term would have 24 estimated interest only payments of $281.25 and 60 estimated monthly principal and interest payments of $866.07. The maximum amount that the interest rate can rise under this program is 5 percentage points, to 8.750%. The monthly estimated payment could rise from $866.07 to $1,296 in the eleventh year. If an escrow account is required or requested, the actual monthly payments will also include amounts for taxes and homeowners insurance. Down payment used in this example is 20%.

**7/1 Adjustable Rate Jumbo Construction-Perm Mortgage**

A $500,000 7/1 adjustable rate jumbo mortgage with an initial rate of 3.375% and an annual percentage rate of 4.204% and a construction term of 24 months would have 24 estimated interest only payments of $703.13 and 60 estimated monthly principal and interest payments of $2,302.30. The maximum amount that the interest rate can rise under this program is 5 percentage points, to 8.375%. The monthly estimated payment could rise from $2,302.30 to $3,467 in the eleventh year. If an escrow account is required or requested, the actual monthly payments will also include amounts for taxes and homeowners insurance. Down payment used in this example is 20%.

**7/1 Adjustable Rate Interest-Only Construction-Perm Mortgage**

A $180,000 7/1 adjustable rate mortgage with interest only payments and an initial rate of 4.000% and an annual percentage rate of 4.671% and a construction term of 24 months would have 24 estimated interest only payments of $300.00 and 60 estimated interest only payments of $600.00. The maximum amount that the interest rate can rise under this program is 5 percentage points, to 9.000%. The monthly estimated payment could rise from $600.00 to $1,616.00 in the eleventh year. If an escrow account is required or requested, the actual monthly payments will also include amounts for taxes and homeowners insurance. Down payment used in this example is 20%.

**10/1 Adjustable Rate Conforming Mortgage**

A $200,000 10/1 adjustable rate mortgage with an initial rate of 3.750% and an annual percentage rate of 3.5301% would have 120 estimated monthly principal and interest payments of $926.24. The maximum amount that the interest rate can rise under this program is 5 percentage points, to 8.750%. The monthly payment could rise from $926.24 to $1,365.48 in the thirteenth year. If an escrow account is required or requested, the actual monthly payments will also include amounts for taxes and homeowners insurance. Down payment used in this example is 20%.

**10/1 Adjustable Rate Jumbo Mortgage**

A $500,000 10/1 adjustable jumbo rate mortgage with an initial rate of 3.375% and an annual percentage rate of 3.958% would have 120 estimated monthly principal and interest payments of $2,210.49. The maximum amount that the interest rate can rise under this program is 5 percentage points, to 8.375%. The monthly payment could rise from $2,210.49 to $3,277.00 in the thirteenth year. If an escrow account is required or requested, the actual monthly payments will also include amounts for taxes and homeowners insurance. Down payment used in this example is 20%.

**10/1 Adjustable Rate Interest-Only Conforming Mortgage**

A $255,000 10/1 adjustable rate mortgage with interest only payments and an initial rate of 4.125% and an annual percentage rate of 4.602% would have 120 estimated interest only payments of $876.56. The maximum amount that the interest rate can rise under this program is 5 percentage points, to 9.125%. The monthly payment could rise from $876.56 to $2290.00 in the thirteenth year. If an escrow account is required or requested, the actual monthly payments will also include amounts for taxes and homeowners insurance. Down payment used in this example is 20%.

**10/1 Adjustable Rate Interest-Only Jumbo Mortgage**

A $500,000 10/1 adjustable rate interest only mortgage with an initial rate of 3.625% and an annual percentage rate of4.154% would have 120 estimated monthly interest only payments of $1,510.42. The maximum amount that the interest rate can rise under this program is 5 percentage points, to 8.625%. The monthly payment could rise from $1,510.42 to $4,330.00 in the thirteenth year. If an escrow account is required or requested, the actual monthly payments will also include amounts for taxes and homeowners insurance. Down payment used in this example is 20%.

**10/1 Adjustable Rate Construction-Perm Mortgage**

A $200,000 10/1 adjustable rate mortgage with an initial rate of 4.00% and an annual percentage rate of 4.597% and a 24 month construction term would have 24 estimated interest only payments of $333.33 and 96 estimated monthly principal and interest payments of $990.43. The maximum amount that the interest rate can rise under this program is 5 percentage points, to 9.00%. The monthly estimated payment could rise from $990.43 to $1,455 in the thirteenth year. If an escrow account is required or requested, the actual monthly payments will also include amounts for taxes and homeowners insurance. Down payment used in this example is 20%.

**10/1 Adjustable Rate Jumbo Construction-Perm Mortgage**

A $500,000 10/1 adjustable rate mortgage with an initial rate of 3.625% and an annual percentage rate of 4.150% and a 24 month construction term would have 24 estimated interest only payments of $755.21 and 96 estimated monthly principal and interest payments of $2.370.99. The maximum amount that the interest rate can rise under this program is 5 percentage points, to 8.625%. The monthly estimated payment could rise from $2,370.99 to $3391 in the fourteenth year. If an escrow account is required or requested, the actual monthly payments will also include amounts for taxes and homeowners insurance. Down payment used in this example is 20%.

**10/1 Adjustable Rate Interest-Only Construction-Perm Mortgage**

A $180,000 10/1 adjustable rate mortgage with interest only payments and an initial rate of 4.250% and an annual percentage rate of 4.700% and a construction term of 24 months would have 24 estimated interest only payments of $318.75 and 96 estimated interest only payments of $637.50. The maximum amount that the interest rate can rise under this program is 5 percentage points, to 9.250%. The estimated monthly payment could rise from $637.50 to $1,799.00 in the fourteenth year. If an escrow account is required or requested, the actual monthly payments will also include amounts for taxes and homeowners insurance. Down payment used in this example is 20%.

**15/1 Adjustable Rate Conforming Mortgage**

A $200,000 15/1 adjustable rate conforming mortgage with an initial rate of 3.75% and an annual percentage rate of 3.779% would have 180 estimated monthly principal and interest payments of $926.24. The maximum amount that the interest rate can rise under this program is 5 percentage points, to 8.75%. The monthly payment could rise from $926.24 to $1273 in the sixteenth year. If an escrow account is required or requested, the actual monthly payments will also include amounts for taxes and homeowners insurance. Down payment used in example is 20%.

**15/1 Adjustable Rate Jumbo Mortgage**

A $560,000 15/1 adjustable jumbo rate mortgage with an initial rate of 3.625% and an annual percentage rate of 3.591% would have 180 estimated monthly principal and interest payments of $2,553.89. The maximum amount that the interest rate can rise under this program is 5 percentage points, to 8.6250%. The monthly payment could rise from $2,553.89 to $3,514.00 in the sixteenth year. If an escrow account is required or requested, the actual monthly payments will also include amounts for taxes and homeowners insurance. Down payment used in this example is 20%.

**15-Year Fixed Rate Conforming Mortgage**

An $180,000 15-year fixed rate conforming mortgage with a rate of 3.500% and an annual percentage rate of 3.680% would have 180 estimated monthly principal and interest payments of $1,286.79. If an escrow account is required or requested, the actual monthly payments will also include amounts for taxes and homeowners insurance. Down payment used in this example is 20%.

**15-Year Fixed Rate Jumbo Mortgage**

A $500,000 15-year fixed rate jumbo mortgage with a rate of 3.500% and an annual percentage rate of 3.565% would have 180 estimated monthly principal and interest payments of$3,574.42 If an escrow account is required or requested, the actual monthly payments will also include amounts for taxes and homeowners insurance. Down payment used in this example is 20%.

**30-Year Fixed Rate Conforming Mortgage**

An $180,000 30-year fixed rate conforming mortgage with a rate of 4.500% and an annual percentage rate of 4.606% would have 360 estimated monthly principal and interest payments of $912.04. If an escrow account is required or requested, the actual monthly payments will also include amounts for taxes and homeowners insurance. Down payment used in this example is 20%.

**30-Year Fixed Rate Jumbo Mortgage**

A $500,000 30-year fixed rate jumbo mortgage with a rate of 4.500% and an annual percentage rate of 4.538% would have 360 estimated monthly principal and interest payments of$2,533.43 If an escrow account is required or requested, the actual monthly payments will also include amounts for taxes and homeowners insurance. Down payment used in this example is 20%.

**FHA 30-Year Fixed Rate Mortgage**

A $163,200 fixed rate 30-year term loan with a rate of 3.500% and an annual percentage rate of 4.051% would have 103 estimated monthly principal and interest payments of $819.79 followed by 257 estimated monthly principal and interest payments of $745.64. Payment will decrease slightly as mortgage insurance premium is adjusted during the first 103 months. If an escrow account is required or requested, the actual monthly payments will also include amounts for taxes and homeowners insurance. Down payment used in this example is 3.5%.

**VA 30-Year Fixed Rate Mortgage**

A $250,705 fixed rate 30-year term loan with a rate of 5.25% and an annual percentage rate of 5.424% would have 360 estimated monthly principal and interest payments of $1,384.41. If an escrow account is required or requested, the actual payments will also include amounts for taxes and homeowner’s insurance.