Option ARM Program Highlights

Option ARM Program Highlights - Hybrid ARMS - Flex 3 and Flex 5

Features Hybrid ARMS - Flex 3 and Flex 5
Available Indices 12-MTA
Available Products Flex 3 and Flex 5 (Full and Low Doc)
Initial Fixed Interest Period 3 or 5 years
Product Type Intermediate Option ARM
Term 15-, 30- and 40-year term
Maximum Loan Amount $2,500,000
Initial Fixed Payment Period 3 or 5 years (depending on product)
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 Yes, after initial 3- or 5-year fixed period
Recast Flex 3: Fifth year and every five years thereafter;
Flex 5: Tenth year and every five years thereafter. In both cases, 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
-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 Note rate

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