$500,000 Mortgage for $1,976/month – Disclosure current as of May 22nd, 2013.
- The advertised loan is a purchase transaction with a 5/1 ARM (Adjustable Rate Mortgage) on a 30-year fully amortizing term.
- The initial interest rate is 2.5% for 60 months. The disclosed APR is based on 0 discount points, 1% origination fee and $1,224 in additional prepaid finance charges due at closing.
- The APR is 2.886% with an initial payment of $1,945 for the first 60 months.
- After the initial period, the variable interest rate and payment will adjust every year and equal the total of the 12-month LIBOR index (0.687% as of May 22, 2013) plus a margin of 2.25%. First adjusted payment will likely increase to approximately $2,074.
- The maximum periodic change in the interest rate is 2% with a maximum rate increase of 5% above the initial interest rate.
- If the interest rate adjusted to the maximum rate (which could not occur until after the fifth year), the maximum monthly payment would be $3,254 for $500,000.
- There is no prepayment penalty.
- The Annual Percentage Rate (APR) is variable and is subject to increase or decrease, so your payments may increase or decrease each year.
- Interest rate quoted assumes a FICO score of 760 with a maximum loan-to-value ratio of 80% on a primary single family residence.
- The actual interest rate, APR and payment may vary based on the specific terms of the loan selected, verification of information, your credit history, the location and type of property, and other factors as determined by Lender.
- Interest rate and APR are variable and subject to increase
- This is for Michigan loans only.
- Rates are subject to change daily without notice.
- Payment amounts shown do not include taxes or insurance.