Examples of Important Loan Terms

Examples of Important Loan Terms - california Change States


The following examples represent a range of  Conforming, High Balance Conforming & Jumbo 1st TD loans, Owner Occupied, 60% LTV. Loan amounts are based on Conforming $250K; High Balance Conforming $500K and a $750K Jumbo loan amount. Payment amounts do not include impounds for taxes,property insurance and/or PMI unless otherwise stated. The dollar amount of any Rebate Credit Points due will be a dollar credit towards the Borrower Non-Recurring Closing Costs which typically includes escrow, title, appraisal, delivery/courier, tax service, flood certification, recording, wire, notary, processing or document preparation, Lender underwriting and/or other fees. Borrower's typically must pay recurring charges such as accrued interest, taxes, insurance and PMI insurance, if applicable. Other fees such as demand pay off statement fees, reconveyance fees and Subordination fees may apply.

Interest Rates can change without prior notice. Call us for Current Rate and Program information. Borrowers and properties must qualify for all loans. Conditions and restrictions may apply.

The examples given are for principal and interest payments only and do not include any payments for property taxes and/or home owner's insurance, therefore your actual monthly payments will be greater.

LOAN TYPE RATE NET POINTS APR
CONFORMING 30 Year Fixed, 360 monthly payments of $1193.54 4.000% +1.065 4.152%
CONFORMING 20 Year Fixed, 240 monthly payments of $1482.22 3.750% +0.865 3.967%
CONFORMING 15 Year Fixed, 180 monthly payments of $1787.20 3.500% +0.544 3.731%
CONFORMING 10 Year Fixed, 120 monthly payments of $2486.81 3.625% +0.250 3.898%

CONFORMING 10/1 LIBOR ARM, CAPS 5/2/5; 120 monthly fixed INITIAL payments of $1193.54 THEREAFTER; 1/1 ARM for next 20 Years, 360 Month Amortization. APR is subject to increase or decrease after the initial fixed rate period elapses.
For Example: At the end of the 10th Annual Anniversary Date, assuming the 1 YEAR LIBOR INDEX is at 1.250% PLUS the 2.250% MARGIN, then the corresponding INTEREST RATE for the 11th year is 3.500% for the next 12 months. After the INITIAL PERIOD elapses the Interest Rate will change annually and is calculated based on the LIBOR INDEX + 2.250% MARGIN or the 5/2/5 RATE CAPS whichever is the LESSER. The INTEREST RATE could be 5.000% HIGHER than the Initial Periodic Rate. Assuming the Initial Rate was 3.625%, thereafter in MONTHS 120-360 an 8.625% LIFE CAP may apply if the INDEX + MARGIN exceeds the LIFE CAP. Assuming a $250K original loan balance that started at 3.625%, at the end of the 10th year the fully amortized remaining balance is $194,427.04 and for a 8.625% LIFE CAP (3.625%+5.000%) the Principal & Interest Monthly Payment is $1,702.70 PLUS PROPERTY TAXES & INSURANCE.

4.000% -0.022 4.545%
CONFORMING 7/1 LIBOR ARM, CAPS 5/2/5; 84 monthly fixed INITIAL payments of $1193.54 THEREAFTER; 1/1 ARM for next 23 Years, 360 Month Amortization. APR is subject to increase or decrease after the initial fixed rate period elapses.
For Example: At the end of the 7th Annual Anniversary Date, assuming the 1 YEAR LIBOR INDEX is at 1.250% PLUS the 2.250% MARGIN, then the corresponding INTEREST RATE for the 8th year is 3.500% for the next 12 months. After the INITIAL PERIOD elapses the Interest Rate will change annually and is calculated based on the LIBOR INDEX + 2.250% MARGIN or the 5/2/5 RATE CAPS whichever is the LESSER. The INTEREST RATE could be 5.000% HIGHER than the Initial Periodic Rate. Assuming the Initial Rate was 3.250%, thereafter in MONTHS 84-360 an 8.250% LIFE CAP may apply if the INDEX + MARGIN exceeds the LIFE CAP. Assuming a $250K original loan balance that started at 3.250%, at the end of the 7th year the fully amortized remaining balance is $211,297.88 and at the 8.250% LIFE CAP (3.250%+5.000%) the Principal & Interest Monthly Payment is $1,710.88 PLUS PROPERTY TAXES & INSURANCE.
4.000% -0.557 4.596%

CONFORMING 5/1 LIBOR ARM, CAPS 2/2/5; 60 monthly fixed INITIAL payments of $1122.61 THEREAFTER; 1/1 ARM for next 25 Years, 360 Month Amortization. APR is subject to increase or decrease after the initial fixed rate period elapses.
For Example:
At the end of the 5th Annual Anniversary Date, assuming the 1 YEAR LIBOR INDEX is at 1.250% PLUS the 2.250% MARGIN, then the corresponding INTEREST RATE for the 6th year is 3.500% for the next 12 months. After the INITIAL PERIOD elapses the Interest Rate will change annually and it is calculated based on the LIBOR INDEX + 2.250% MARGIN or the 2/2/5 RATE CAPS whichever is the lesser. The INTEREST RATE could be 2.000% higher than the Initial Periodic Rate. Assuming the Initial Rate was 3.125%, in the 6th year a 5.125% CAP may apply if the INDEX + MARGIN exceeds the 2% CAP. In years 7-30 the 5.000% LIFE CAP could apply. Assuming a $250K original loan balance that started at 3.125%, at the end of 60 MONTHS there is a $222,769.51 fully amortized remaining balance. Thereafter, at an assumed 5.125% CAP (3.125%+2.000%) the Principal & Interest Monthly Payment for MONTHS 60-72 is at $1,318.57 PLUS PROPERTY TAXES & INSURANCE. At the end of 72 MONTHS there is $191,896.16 remaining principal loan balance and at an assumed 7.125% (5.125%+2.000%) the Principal & Interest Monthly Payment for MONTHS 72-84 is at $1,392.52 PLUS PROPERTY TAXES & INSURANCE. Between 84-360 MONTHS if the assumed 8.125% LIFE CAP applies the Principal & Interest Monthly Payment is $1,538.16 PLUS PROPERTY TAXES & INSURANCE.

3.500% +0.500 4.635%
HIGH BALANCE CONFORMING LOAN RATE NET POINTS APR
HIGH BALANCE CONFORMING 30 Year Fixed, 360 monthly payments of $2423.25 4.125% +1.199 4.258%
HIGH BALANCE CONFORMING 20 Year Fixed, 240 monthly payments of $3027.27 3.999% +0.489 4.119%
HIGH BALANCE CONFORMING 15 Year Fixed, 180 monthly payments of $3636.11 3.750% +0.282 3.879%
HIGH BALANCE CONFORMING 10 Year Fixed, 120 monthly payments of $5003.06 3.750% +0.282 3.879%
HIGH BALANCE CONFORMING 10/1 LIBOR ARM, CAPS 5/2/5; 120 monthly fixed INITIAL payments of $2423.24 THEREAFTER; 1/1 ARM for next 240 MONTHS, 360 Month Amortization. APR is subject to increase or decrease after the initial fixed rate period elapses.
For Example: At the end of the 10th Annual Anniversary Date, assuming the 1 YEAR LIBOR INDEX is at 1.250% PLUS the 2.250% MARGIN, then the corresponding INTEREST RATE for MONTHS 120-132 is 3.500% being the next 12 months. After the INITIAL PERIOD elapses the Interest Rate will change annually and is calculated based on the LIBOR INDEX + 2.250% MARGIN or the 5/2/5 RATE CAPS whichever is the LESSER. The INTEREST RATE could be 5.000% HIGHER than the Initial Periodic Rate. Assuming the Initial Rate was 3.625%, thereafter for MONTHS 120-360 an assumed 8.625% LIFE CAP may apply if the INDEX + MARGIN exceeds the LIFE CAP. Assuming a $500K original loan balance that started at 3.625%, at the end of 120 MONTHS the fully amortized remaining balance is $388,854.08 and for a 8.625% LIFE CAP (3.625%+5.000%) the Principal & Interest Monthly Payment is $3,405.40 PLUS PROPERTY TAXES & INSURANCE.
4.125% -0.250 4.516%

HIGH BALANCE CONFORMING 7/1 LIBOR ARM, CAPS 5/2/5; 84 monthly fixed INITIAL payments of $2,351.18 THEREAFTER; 1/1 ARM for next 23 Years, 360 Month Amortization. APR is subject to increase or decrease after the initial fixed rate period elapses
.
For Example: At the end of the 7th Annual Anniversary Date, assuming the 1 YEAR LIBOR INDEX is at 1.250% PLUS the 2.250% MARGIN, then the corresponding INTEREST RATE thereafter for MONTHS 84-72 is 3.500% being the next 12 months. After the INITIAL PERIOD elapses the Interest Rate will change annually and is calculated based on the LIBOR INDEX + 2.250% MARGIN or the 5/2/5 RATE CAPS whichever is the LESSER. The INTEREST RATE could be 5.000% HIGHER than the Initial Periodic Rate. Assuming the Initial Rate was 3.250%, thereafter in MONTHS 84-360 an 8.250% LIFE CAP may apply if the INDEX + MARGIN exceeds the LIFE CAP. Assuming a $500K original loan balance that started at 3.250%, at the end of 84 MONTHS the fully amortized remaining balance is $422,596.75 and at the assumed 8.250% LIFE CAP (3.250%+5.000%) the Principal & Interest Monthly Payment is $3,421.76 PLUS PROPERTY TAXES & INSURANCE.

3.875% -0.250 4.555%
HIGH BALANCE CONFORMING 5/1 HIGH BALANCE LIBOR ARM, CAPS 5/2/5; 60 monthly fixed INITIAL payments of $2,280.25 THEREAFTER; 1/1 ARM for next 25 Years, 360 Month Amortization. APR is subject to increase or decrease after the initial fixed rate period elapses.

For Example:
At the end of the 5th Annual Anniversary Date, assuming the 1 YEAR LIBOR INDEX is at 1.250% PLUS the 2.250% MARGIN, then the corresponding INTEREST RATE thereafter for MONTHS 60-72 is 3.500% being the next 12 months. After the INITIAL PERIOD elapses the Interest Rate will change annually and is calculated based on the LIBOR INDEX + 2.250% MARGIN or the 5/2/5 RATE CAPS whichever is the LESSER. The INTEREST RATE could be 5.000% HIGHER than the Initial Periodic Rate. Assuming the Initial Rate was 3.125%, thereafter in MONTHS 72-360 an 8.125% LIFE CAP may apply if the INDEX + MARGIN exceeds the LIFE CAP. Assuming a $500K original loan balance that started at 3.125%, at the end of the 5th year the fully amortized remaining balance is $445,538.91 and at the 8.125% LIFE CAP (3.125%+5.000%) the Principal & Interest Monthly Payment is $3,475.71 PLUS PROPERTY TAXES & INSURANCE.
3.625% -0.250 4.555%
JUMBO LOAN RATE NET POINTS APR
Jumbo 30 Year Fixed, 360 monthly payments of $3689.54 4.250% -0.250 4.254%
Jumbo 15 Year Fixed, 180 monthly payments of $5500.79 3.875% +0.375 3.998%
JUMBO 10/1 LIBOR ARM, CAPS 5/2/5; 120 monthly fixed INITIAL payments of $3,689.55 THEREAFTER; 1/1 ARM for next 20 Years, 360 Month Amortization. APR is subject to increase or decrease after the initial fixed rate period elapses.

For Example: At the end of the 10th Annual Anniversary Date, assuming the 1 YEAR LIBOR INDEX is at 1.250% PLUS the 2.250% MARGIN, then the corresponding INTEREST RATE thereafter for MONTHS 120-132 is 3.500% being the next 12 months. After the INITIAL PERIOD elapses the Interest Rate will change annually and is calculated based on the LIBOR INDEX + 2.250% MARGIN or the 5/2/5 RATE CAPS whichever is the LESSER. The INTEREST RATE could be 5.000% HIGHER than the Initial Periodic Rate. Assuming the Initial Rate was 4.250%, thereafter in MONTHS 120-360 an 8.500% LIFE CAP may apply if the INDEX + MARGIN exceeds the LIFE CAP. Assuming a $750K original loan balance that started at 4.250%, at the end of 120 MONTHS the fully amortized remaining balance is $595,824.09 and at the 9.250% LIFE CAP (4.250%+5.000%) the Principal & Interest Monthly Payment is $5,456.95 PLUS PROPERTY TAXES & INSURANCE.
4.250% -0.750 4.522%

JUMBO 7/1 LIBOR ARM, CAPS 5/2/5; 84 monthly fixed INITIAL payments of $3,473.36 THEREAFTER; 1/1 ARM for next 23 Years, 360 Month Amortization. APR is subject to increase or decrease after the initial fixed rate period elapses.

For Example: At the end of the 7th Annual Anniversary Date, assuming the 1 YEAR LIBOR INDEX is at 1.250% PLUS the 2.250% MARGIN, then the corresponding INTEREST RATE thereafter for MONTHS 84-96 is 3.500% being the next 12 months. After the INITIAL PERIOD elapses the Interest Rate will change annually and is calculated based on the LIBOR INDEX + 2.250% MARGIN or the 5/2/5 RATE CAPS whichever is the LESSER. The INTEREST RATE could be 5.000% HIGHER than the Initial Periodic Rate. Assuming the Initial Rate was 3.500%, thereafter in MONTHS 84-360 an 8.500% LIFE CAP may apply if the INDEX + MARGIN exceeds the LIFE CAP. Assuming a $750K original loan balance that started at 3.500%, at the end of 84 MONTHS the fully amortized remaining balance is $637,834.32 and at the 8.500% LIFE CAP (3.500%+5.000%) the Principal & Interest Monthly Payment is $5,269.06 PLUS PROPERTY TAXES & INSURANCE.

3.750% +0.125 4.493%
JUMBO 5/1 LIBOR ARM, CAPS 5/2/5; 60 monthly fixed INITIAL payments of $3,315.72 THEREAFTER; 1/1 ARM for next 25 Years, 360 Month Amortization. APR is subject to increase or decrease after the initial fixed rate period elapses.

For Example:
At the end of the 5th Annual Anniversary Date, assuming the 1 YEAR LIBOR INDEX is at 1.250% PLUS the 2.250% MARGIN, then the corresponding INTEREST RATE thereafter for MONTHS 60-72 is 3.500% being the next 12 months. After the INITIAL PERIOD elapses the Interest Rate will change annually and is calculated based on the LIBOR INDEX + 2.250% MARGIN or the 5/2/5 RATE CAPS whichever is the LESSER. The INTEREST RATE could be 5.000% HIGHER than the Initial Periodic Rate. Assuming the Initial Rate was 3.375%, thereafter in MONTHS 72-360 an 8.375% LIFE CAP may apply if the INDEX + MARGIN exceeds the LIFE CAP. Assuming a $750K original loan balance that started at 3.375%, at the end of 60 MONTHS the fully amortized remaining balance is $671,273.97 and at the 8.375% LIFE CAP (3.375%+5.000%) the Principal & Interest Monthly Payment is $5,348.85
3.375% +1.000 4.576%

The examples given are for principal and interest payments only and do not include any payments for property taxes and/or home owner's insurance, therefore your actual monthly payments will be greater.
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