No Closing Cost 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 is fixed for 5 years, then adjusts annually and may increase based on a market index, but can’t go above the predetermined adjustment cap. Our 5/5 ARM and 10/5 ARM are fixed for 5 years and 10 years respectively, then adjusts every 5 years and may increase based on a market index, but can’t go above the predetermined adjustment cap.
No Closing Costs simply means the customer is not charged for many of the “closing costs” of the mortgage. Closing costs range from $1,800.00 - $2,500.00, but are waived. Closing costs may include fees such as title insurance, abstract update, non-escrow, credit report, loan processing, appraisal, attorney fees and other expenses that are non-recurring (one time) charges at the beginning of the loan process. However, under unusual circumstances, the borrower may pay some fees. The mortgage loan account must be kept open for a minimum of 2 years to avoid paying closing costs.
5/1 ARM EXAMPLE: A $100,000.00 5/1 ARM financed for 30 years at an interest rate of 6.750% with no closing costs would yield an APR* (Annual Percentage Rate) of 7.150% and 61 payments of $648.60, 298 payments of $678.47 and 1 final payment of $680.44
5/5 ARM EXAMPLE: A $100,000.00 5/5 ARM financed for 30 years at an interest rate of 6.875% with no closing costs would yield an APR* (Annual Percentage Rate) of 6.458% and 61 payments of $656.93, 298 payments of $605.79 and 1 final payment of $602.40
10/5 ARM EXAMPLE: A $100,000.00 10/5 ARM financed for 30 years at an interest rate of 7.125% with no closing costs would yield an APR* (Annual Percentage Rate) of 6.906% and 120 payments of $673.72, 239 payments of $622.80 and 1 final payment of $624.10
*The APR (Annual Percentage Rate) in this example reflects all pre-paid costs and odd days’ interest with no points. A $425.00 Appraisal Fee is initially collected from the customer, but refunded in full at the time of the loan closing. If the loan does not close and the appraisal was ordered, the Bank retains the $425.00 fee. All loans are subject to credit approval. Approval restrictions may apply.
FIRST TIME HOME BUYERS: If you qualify under the guidelines as a First Time Home Buyer, the application fees and loan administration fees are waived.
You may also file complaints and obtain further information about Watertown Savings Bank by contacting us directly, or by contacting the New York State Department of Financial Services Consumer Assistance Unit at 1-800-342-3736 or by visiting the Department’s website atwww.dfs.ny.gov. Watertown Savings Bank is registered with NYSDFS.