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Adjustable Rate Mortgages Disclosure Information

An Adjustable Rate Mortgage (ARM) means the initial interest rate is fixed for an introductory period before adjusting on a predetermined basis.  Our 5/1 ARM and 7/1 ARM are fixed for 5 years and 7 years respectively, then adjust annually and may increase based on a market index, but canít go above the predetermined adjustment cap.  Our 5/5 ARM is fixed for 5 years, then adjusts every 5 years and may increase based on a market index, but canít go above the predetermined adjustment cap.

5/1 ARM EXAMPLE: A $100,000.00 5/1 ARM financed for 30 years at an interest rate of 3.750% would yield an APR* (Annual Percentage Rate) of 3.796% and 359 monthly payments of $463.11 and 1 final payment of $466.81.

5/5 ARM EXAMPLE: A $100,000.00 5/5 ARM financed for 30 years at an interest rate of 4.000% would yield an APR* (Annual Percentage Rate) of 4.362% and 359 monthly payments of $477.41 and 1 final payment of $502.55.

7/1 ARM EXAMPLE: A $100,000.00 7/1 ARM financed for 30 years at an interest rate of 4.250% would yield an APR* (Annual Percentage Rate) of 4.298% and 359 monthly payments of $491.94 and 1 final payment of $491.86.

*The APR (Annual Percentage Rate) in this example reflects all pre-paid costs and odd daysí interest with no points. The borrower will pay cost of the survey, title insurance, attorney fees, appraisal fee, flood zone determination fee, credit report fee, loan processing fee, mortgage recording tax, abstract re-date and other applicable related costs. A $375.00 appraisal fee, $200.00 application fee and a $36.00 credit report fee will be collected upon return by the borrower, of the initial loan disclosures. Homeownerís insurance will be required as well as flood insurance for applicable areas. All loans are subject to credit approval. Approval restrictions may apply.