Refinance Loan Type - Hybrid Option ARM Mortgage - January 26, 2007
|
Vallejo, California Refinance Example Mortgage Example The mortgage example takes place on January 26, 2007. The name of the loan applicant is Johnny. This borrower wants to do a refinance. Property The property is a 1-4 unit property. This piece of real estate is in Vallejo, California. The property type is a primary residence. The Loan Type This loan has a length in years of 40. The most current credit score is 720. This borrower's mortgage will have stated documentation. Mortgage rates today The minimum payment rate is 3.00%. The mortgage rate for this new loan will be 6.50%. The APR is calculated at 6.58%. Loan Size The current property is worth $375,000. The property has a current mortgage of $240,000. The borrower will cash out around $60,000. The new total loan will be for $300,000. The loan to property value ratio is 80%. The Mortgage Payment The new monthly payment is $1,756. The monthly payment on an interest only mortgage would be $1,625. In this example the interest only payment is lower than the regular monthly payment by $131. The minimum payment for this loan will be $1,074. The minimum payment is smaller than a regular payment by $682. Note: This loan has the potential for negative amortization (deferred interest). The initial interest rate for the loan may change after the first month. The minimum payment option is usually available for the first 5 years, with the minimum payment rate being reset on an annual basis. This payment may increase. Maximum lifetime rate for the loan is 9.99% or whatever your loan note states. LendingTree Loan
|
