This is a sample of a TEGO Certified "How Your Loan Really Works" document for a hybrid adjustable loan. Your lender or closing agent will enter your loan information into TEGO's proprietary software. When they're done, the TEGO sytem will provide you with an easy to read version of your loan terms. We will point out critical things like:

Is your loan a fixed rate, adjustable, or a hybrid (combination)?

Is there a prepayment penalty?

Does your loan allow for interest only payments?

Is your rate locked?

Does your loan have a negative amortization option?

Is there a balloon payment? When is it due?

TEGO CERTIFIED

How Your Loan Really Works - Hybrid Adjustable

Loan #:
Borrower:
Property Address:
City:
State: 

1
Frank Johnson
25 University
Oakland
CA

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 3.233%.


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 Months.


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.