| |
Annually Adjusted |
Monthly Adjusted |
Expected Rate
(used only to determine loan amounts) |
10-year Treasury rate (index) plus
2.1%
(margin) |
10-year Treasury rate (index) plus 1.5%
(margin) |
Net Principal Limit
(maximum loan proceeds available to borrower at closing) |
Smaller |
Larger |
Initial Rate/Current Rate
(interest rate on the loan balance) |
Subject to change once per year; equals
1-year Treasury rate (index) plus 2.1% (margin) |
Subject to change once per month; equals
1-year Treasury rate (index) plus 1.5% (margin) |
Interest Rate Cap
(above or below) |
2 points per year; 5 point over the life
of the loan |
No annual cap; 10 points over the life of
the loan |
| Compounding Rate (total periodic rate
charged on loan balance) |
Initial rate plus .5% for periodic
mortgage insurance premium (MIP) |
Initial rate plus .5% for periodic
mortgage insurance premium (MIP) |
| Creditline Growth Rate |
Same as compounding rate |
Same as compounding rate |
| Monthly greditline growth is |
larger |
smaller |