Home Equity Loan Preliminary Disclosure
This disclosure describes the features of the Adjustable Rate Mortgage (ARM) program you are considering. Information on other ARM programs is available upon request.
This loan program has an adjustable rate feature. This means that your interest rate and payment amount can change.
How Your Interest Rate and Payment are Determined
- Your interest rate will be based on an index plus a margin.
- The interest rate will be based on the Chase Manhattan Prime Rate plus our margin. Ask us for our current interest rate and margin.
- Your payment will be based on the interest rate, loan balance, and remaining loan term.
- Information about the index can be obtained from CHASE MANHATTAN BANK, N.A., PHONE #(212) 270-2916.
- Your interest rate will equal the index rate plus our margin unless your interest rate "caps" limit the amount of change in the interest rate.
How Your Interest Rate Can Change
- Your interest rate can change annually.
- Your interest rate cannot increase or decrease more than 2 percentage points at each adjustment.
- Your interest rate cannot increase more than 6 percentage points over the term of the loan.
- Your interest rate will never be less than 8%.
1 to 10 Year Term
How Your Payment Can Change
- Your monthly payment can change annually based on changes in the interest rate.
- You will be notified in writing at least 25, but no more than 120, days before the due date of payment at a new level. This notice will contain information about your interest rates, payment amount, and loan balance.
- For example, on a $10,000, 5-year loan with an initial interest rate of 10.00% in effect on January 1, 2000, the maximum amount that the interest rate can rise under this program is 6 percentage points to 16.00%, and the monthly payment can rise from an initial payment of $212.47 to a maximum of $230.09 in the fourth year.
- To see what your payments would be, divide your mortgage amount by $10,000; then multiply the monthly payment by that amount. (For example, the monthly payment for a mortgage amount of $60,000 would be $60,000 divided by 10,000 = 6; 6 x $212.47 = $1,274.82 per month.)
11 to 20 Year Term
How Your Payment Can Change
- Your payment can change annually based on changes in the interest rate.
- You will be notified in writing at least 25, but no more than 120, days before the due date of payment at a new level. This notice will contain information about your interest rates, payment amount, and loan balance.
- For example, on a $10,000, 15-year loan with an initial interest rate of 10.00% in effect on January 1, 2000, the maximum amount that the interest rate can rise under this program is 6 percentage points to 16.00%, and the monthly payment can rise from an initial payment of $107.46 to a maximum of $142.31 in the fourth year.
- To see what your payments would be, divide your mortgage amount by $10,000; then multiply the monthly payment by that amount. (For example, the monthly payment for a mortgage amount of $60,000 would be $60,000 divided by 10,000 = 6; 6 x $107.46 = $644.76 per month.
This is not a commitment to make a loan
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