| Rate
Adjustment: Rates are interpolated between the
rate just above and the rate just below zero points.
Transaction Characteristics:
Loan amount $400,000, property value $500,000, single family home
purchased as permanent residence, borrower’s FICO score 720, full
documentation of income and assets, borrower escrows taxes and
insurance, lock period 30 days.
ARM Characteristics: The margin on all the ARMs is 2.25%. The
index is one-year Libor on the ARMs. Maximum rates are 5% or 6% above
the initial rate. The initial rate adjustment cap is 5% except for the
3-year ARM on which it is 2%. Periodic rate adjustment caps after the
initial rate period are all 2%.
SOURCE: Compiled by the Mortgage Professor from data provided by
Amerisave. |