Wholesale Rates: Rates shown are the best quotes available to mortgage
brokers, who add their markup before quoting their retail prices.
Consumers cannot borrow at these wholesale rates.
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 800 (720 prior to 12/22/2008), full documentation
of income and assets, borrower escrows taxes and insurance, lock period
60 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.