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ABOUT 3/1 HYBRID ADJUSTABLE RATE MORTGAGES (ARM) – Interest rates for this type of ARM remain the same for the first 3 years of the loan. Rates may be subject to increase after the initial 3-year period of the loan which would result in a higher monthly payment. As an alternative, fixed rate loan programs are also available.
ABOUT INTEREST-ONLY LOANS – These loans include a 10-year interest-only period to begin the loan term. Interest-only payments do not reduce the mortgage principal amount. After the interest-only period ends, the monthly payment will become fully-amortizing over the remaining term, resulting in a higher monthly payment that includes both principal and interest.
* Advertised interest rate and APR are for illustrative purposes only, is based on sales price of $463,333, and may vary based on borrower’s credit score, actual closing costs and other variables. Scenario is based on borrower qualification for a 30-year, interest-only 3/1 hybrid adjustable-rate mortgage loan (“ARM”) with a TAMI (tax advantage mortgage insurance) option and a 10% borrower down payment, with a seller-paid interest rate buydown of $22,935 resulting in a rate of 4.000% (4.55% variable APR) and a monthly interest-only payment of $1,390 for the 1st 3 years. Example monthly payment includes interest only; Principal, taxes, other insurance, and fees such as HOA are extra. TAMI is lender paid mortgage insurance where the premium is paid by Countrywide and the buyer opts to finance the premium into the loan amount or interest rate. TAMI may be tax deductible, contact a tax advisor for information on the potential tax benefi ts of lender paid mortgage insurance. Rates subject to increase and assumes no change in index after the 1st 3 years. Rates effective 07/15/08 and are subject to change without notice. ARM rates and monthly payments are subject to increase after the 3-year initial period of 30-year loan term. Estimated maximum monthly principal and interest payment over life of the loan is $3,660.00. After completion of the 10-year interest-only period, the loan will be fully amortized over the remaining term as an adjustable-rate mortgage that adjusts once a year and borrowers will be required to pay principal & interest, which will result in a significantly higher monthly payment. As an alternative, fixed rate loan programs are also available. Loan program available through Countrywide, however buyer may finance via any qualified lender but will not be eligible for this offer. Scenario assumes the buyer has good credit, sets up a tax & insurance escrow account and pays estimated closing costs of $5,000. Not all buyers will qualify. To qualify for this offer, buyer must sign a purchase agreement between 07/25/08 and 08/29/08 and close escrow per terms of contract. This offer subject to underwriting guidelines, and available only for owner occupied homes; non-owner-occupied homes are subject to additional restrictions and qualifying requirements. Lee Homes and Countrywide are independently responsible for the products and services each company offers. July 2008. Equal Housing Lender. ©2008 Countrywide Bank, FSB, Countrywide Home Loans Division. Member FDIC. Trade/service marks are the property of Countrywide Financial Corporation, Countrywide Bank, FSB, or their respective affiliates and/or subsidiaries. Some products may not be available in all states. This is not a commitment to lend. Restrictions apply. All rights reserved. Countrywide and Lee Homes are separate entities; each is independently responsible for its products and services. July 2008.
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