How your loan really works - Hybrid ARM Borrower Notice
Your loan amount will be $ 500000.00.
The interest rate being quoted at this time is 4.750%
This rate is fixed for 60 months.
After 60 months your rate will adjust to a new interest rate. The new interest
rate will be calculated by adding 2.250% (the margin) to the current value of the
1 YR LIBOR index. If this loan were adjusting today the new rate would be
The rate on this loan can only change a maximum of 5.000 % up or down at
the first adjustment. After the first adjustment. the rate could change every 12
Over the entire life of the loan the interest rate can never exceed 9.750%.
The monthly payment on your loan based on the initial interest rate is $ 2608.24
by Month. This payment does not include property taxes, insurance, or other monthly
costs that may be associated with your loan.
This loan gives you the option of making an interest only payment. Selecting this
lower payment will not lower your loan balance but could make your payment more
affordable. The interest only payment would be $ 1979.17. This payment does
not include property taxes, insurance, or other monthly costs that may be associated
with your loan.
This loan does not allow negative amortization or deferred interest. Negative amortization can increase your loan balance. TEGO
will request that your loan closing agent or attomey re-verify this loan does not have negative amortization before you sign your loan papers.
Your rate is locked for 45 days. To ensure your loan process goes smoothly. provide your loan officer with requested
documentation quickly and completely.
Your loan DOES NOT have a prepayment penalty. This means can you pay your loan off anytime without having to pay extra.
Before you sign your final loan papers we will request your closing agent verily again that your loan does not have a prepayment
penalty Only then can you be sure you know the truth about your loan.