| Features |
1-, 3-, 6- and 12-Month Option ARMS |
| Available Indices |
12-MTA or COFI |
| Available Products |
With the 12-MTA: 1-, 3-, 6-, 12-month Option ARM (Full and Low Doc) |
| With the COFI: 1- and 3-month Option ARM (Full and Low Doc) |
| Initial Fixed Interest Period |
1, 3, 6, or 12 months |
| Product Type |
ARM |
| Term |
15-, 30- and 40-year term |
| Maximum Loan Amount |
$2,500,000 |
| Initial Fixed Payment Period |
12 months |
| Interest Rate Adjustment Frequency |
Monthly after initial fixed interest period |
| Payment Adjustment Frequency |
Annually from the first payment date |
| Payment Change Cap |
7.5% maximum cap increase or decrease, except as defined in recast parameters below, without regard to payment cap |
| Potential Deferred Interest |
Possible, depending on payment option selected |
| Maximum deferred interest - 125% of original loan amount (110% in NY) |
| Recast |
Fifth year and every five years thereafter or immediately if the negative limit exceeds 125% (110% in NY) |
| Payment Options |
After the initial period, borrowers may have up to four payment options: |
| 1. Minimum Payment Due (may result in deferred interest) |
| 2. Interest Only* |
| 3. Full Principal and Interest Payment (based on the remaining term of the loan)* |
| 4. Full Principal and Interest Payment (based on a 15-year term)* |
| *will not be offered if the payment is less than the minimum payment due |
| Advantage 90 |
Available on loans of 80.01% to 89.9% LTV with no MI. Not available on Sub-Prime |
| Assumability |
Yes, subject to an assumption fee and certain conditions |
| Eligible Properties |
-1-4 units |
| -Condos and PUDs |
| -Detached SFR only on loans >$1M |
| -1-unit co-op (NY only) |
| Occupancy |
-Owner Occupied |
| -Non-owner-occupied |
| -Second home |
| Loan Purpose |
-Purchase |
| -Cash-out refinance |
| -No cash-out refinance |
| MI Coverage Requirements |
Borrower paid monthly is required for all loans with an LTV greater than or equal to 90%, and is available for loans greater than 80%. MI is not available in NY on potential deferred interest ARMs greater than 80%. |
| Uninsured Sub-Prime (greater than 80.0% to 89.9%) |
| Secondary/Subordinate Financing |
Available. See Product and Pricing Guide for eligibility and maximums. |
| Qualifying Rate |
See current pricing guide for product-specific qualifying rates |
