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Information on Mortgage Products The following are first mortgage products offered by American Partners Bank. For Rates, please contact APB. If there is a phrase or term that you are not familiar with please see the Mortgage Glossary. 30-Year Fixed Rate 15-Year Fixed Rate A "fixed rate mortgage" is a loan secured by a real estate mortgage in which the interest rate and the amount of each payment remain constant throughout the life of the loan. The "30-Year" or "15-Year" characteristics refer to the length of time that it would take to fully satisfy the principal balance of the loan based upon regular timely payments as prescribed within the loan’s promissory note. The additional amount included in a monthly payment for real estate taxes, hazard insurance, or other items may change periodically as these amounts change. However, the interest rate, repayment term, and monthly payment will remain the same. ARM (Adjustable Rate Mortgage) An "ARM" loan is a real estate secured mortgage in which the interest rate is periodically adjusted, moving higher or lower in the same ratio as a pre-selected index, such as Treasury bill rates. ARM loans may include caps on interest rate increases in a given time period, and over the life of the loan, and may include limits on the frequency of interest rate adjustments. ARM loans generally have initial below market interest rates in return for the borrower sharing the risk that interest rates may rise during the life of the loan. Please request the disclosure for the specific ARM product to obtain detailed information on the limitations and parameters of the loan’s characteristics. For a copy of the disclosure, just contact APB. For more
information please contact us at 1-877-992-4700. 1-Year ARM An adjustable rate mortgage whose interest rate is changed on an annual basis. Typically the initial or starting rate is below market and adjusts based upon a pre-selected index and a specified margin. This loan will have limitations on the frequency (1-year) and range at which the rate may adjust. Please see "ARM" or "Adjustable Rate Mortgage" for more information on the definition of an ARM. For more details as to the specific characteristics of a 1-Year ARM, please request a disclosure for this product. 3-1 ARM An adjustable rate mortgage whose interest rate remains unchanged for the first 3 years and then is changed on an annual basis. Typically the initial or starting rate is below market and adjusts after the initial 3-year period based upon a pre-selected index and a specified margin. This loan will have limitations on the frequency (1-year) and range at which the rate may adjust. Please see "ARM" or "Adjustable Rate Mortgage" for more information on the definition of an ARM. For more details as to the specific characteristics of a 3-1 ARM, please request a disclosure for this product. 5-1 ARM An adjustable rate mortgage whose interest rate remains unchanged for the first 5 years and then is changed on an annual basis. Typically the initial or starting rate is below market and adjusts after the initial 5-year period based upon a pre-selected index and a specified margin. This loan will have limitations on the frequency (1-year) and range at which the rate may adjust. Please see "ARM" or "Adjustable Rate Mortgage" for more information on the definition of an ARM. For more details as to the specific characteristics of a 5-1 ARM, please request a disclosure for this product. 7-1 ARM An adjustable rate mortgage whose interest rate remains unchanged for the first 7 years and then is changed on an annual basis. Typically the initial or starting rate is below market and adjusts after the initial 7-year period based upon a pre-selected index and a specified margin. This loan will have limitations on the frequency (1-year) and range at which the rate may adjust. Please see "ARM" or "Adjustable Rate Mortgage" for more information on the definition of an ARM. For more details as to the specific characteristics of a 7-1 ARM, please request a disclosure for this product. Jumbo A "jumbo" is a loan that exceeds the statutory dollar limit eligible for purchase by the Federal Home Loan Mortgage Corporation (Freddie Mac) or Federal National Mortgage Association (Fannie Mae). The statutory limit adjusts each year based upon an index established by Congress. For more
information please contact us at 1-877-992-4700. |