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 annually. 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 is fixed for 5 years, 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 any of the “closing costs” of the mortgage. Closing costs may include items such as title and non-escrow fees, credit report fees, loan administration fees, appraisal fees, attorney fees and other expenses that are non-recurring (one time) charges at the beginning of the loan process. However, 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 4.750% with no closing costs would yield an APR* (Annual Percentage Rate) of 4.767% and 359 monthly payments of $522.74, and 1 payment of $524.75.
5/5 ARM EXAMPLE: A $100,000.00 5/1 ARM financed for 30 years at an interest rate of 5.000% with no closing costs would yield an APR* (Annual Percentage Rate) of 5.018% and 359 monthly payments of $538.01, and 1 payment of $535.82.
*The APR (Annual Percentage Rate) in this example reflects all pre-paid costs with no points and no odd-days interest. This example assumes the establishment of an escrow account and a 20% down payment on the property. A $350.00 appraisal fee, $200.00 application fee and an $18.00 credit report fee will be collected upon return, by the borrower, of the initial loan disclosures. All loans 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 applcation fees and loan administration fees are waived.