You may only convert to a fixed interest rate on ______________________________________, and only during the
following time period: _______________________________________________________________________________
__________________________________________________________________________________________________
Your new fixed interest rate will be determined by: ________________________________________________________
__________________________________________________________________________________________________
__________________________________________________________________________________________________
ADDITIONAL FEATURES OF YOUR VARIABLE RATE MORTAGE PROGRAM
□
□
Someone buying this property
cannot assume the remaining balance due under original mortgage terms
may
assume, subject to lender’s conditions, the remaining balance due under original mortgage terms.
□
□
This Variable Rate Mortgage Program Disclosure
does
does not have a Demand Feature
The Demand Feature is subject to the following: __________________________________________________________
__________________________________________________________________________________________________
__________________________________________________________________________________________________
Other additional features: _____________________________________________________________________________
__________________________________________________________________________________________________
__________________________________________________________________________________________________
__________________________________________________________________________________________________
HISTORIC EXAMPLE
The example below shows how your payments would have changed under this variable rate mortgage program based on
actual changes in the index from _______________ to ______________. This does not necessarily indicate how your
index will change in the future.
The example is based on the following assumptions:
Amount
$10,000
Caps _____________________ periodic interest rate cap
Term
_______________
____________________ lifetime interest rate cap
Change Date
_______________
_____________________ payment cap
Payment Adjustment
_______________
Interest Rate Carryover __________________________
Interest Adjustment
_______________
Negative Amortization __________________________
Margin*
_______________
Interest Rate ______________ **** ________________
Index ________________________________________
_____________________________________________
_____________________________________________
Year__________
Index
Margin_______
Interest Rate
Monthly Payment
Remaining
(as of
)
%
(percentage pts)
(%)
($)
Balance ($)
To see what your payments would have been during that period, divide your mortgage amount by $10,000; then multiply
the _________________ payment by that amount. (For example, in _____________ the ________________ payment for
a mortgage amount of $_________________ taken out in ________________ would be $_________________ ÷ $10,000
= __________________ ; ____________________ x ___________________ = _________________________________
∗ This is a margin we have used recently; your margin may be different.
** This interest rate reflects a _______________percentage point annual interest rate cap.
*** This interest rate reflects a _______________percentage point lifetime interest rate cap.
**** This is a discount we have used recently; your discount may be different.
I/We hereby acknowledge receipt of this Variable Rate Mortgage Program Disclosure and a copy of the Consumer
Handbook on Adjustable Rate Mortgage on the date indicated below.
________________________________________________________________
__________________________
Borrower
Date
________________________________________________________________
__________________________
Borrower
Date