Form H-19(A) - Fixed Rate Mortgage Model Form (Page 2 of 2) in pdf

Form H-19(A) - Fixed Rate Mortgage Model Form Page 2

KEY QUESTIONS ABOUT RISK

Can my interest rate increase?

No.

Can my monthly payment increase?

[No.][YES. Your payment can increase beginning in (date).]

Could I owe a prepayment penalty?

[No.][YES. If you pay off your loan, refinance, or sell your home within (period)

you could pay a penalty of up to $_____.]

MORE INFORMATION ABOUT YOUR PAYMENTS

[Payment Change Limits]

[Your minimum payments due cannot increase more than ___% each (period) until

(description of recast event). [When this happens][Beginning in (period)], you must

make full monthly payments that cover all principal and interest owed on the loan.]

Escrow

[An escrow account is required for property taxes and insurance (such as

homeowner’s insurance). Your escrow payment is an estimate and can change at any

time. See your Good Faith Estimate or HUD-1 form for more details.][An escrow

account is not required on this loan. You must pay your property taxes, homeowners,

and other insurance on your own.]

[[Private ] Mortgage Insurance] [[Private ] Mortgage Insurance [(PMI)] is required for this loan. It is

included in your escrow.]

Total Payments

If you made all payments as scheduled, you would make (number) payments totaling

$_____[, including estimated escrow]. Of this amount, $_____ would go to interest and

settlement charges. This amount, and your amount financed of $_____, are used to

calculate your APR.

 You have no obligation to accept this loan. [Your signature below only confirms that you have received

this form.]

 If you are unable to make the payments on this loan, you could lose your home. There is no guarantee

that you will be able to refinance to lower your rate and payments.

 [If you borrow more than your home is worth, the interest on the extra amount may not be deductible for

federal income tax purposes. Consult a tax advisor to find out whether the interest you pay is deductible.]

 If you do not understand any part of this form, ask questions. For more information, go to (Web site of

the Federal Reserve Board).

Page 2 of 2

Form H-19(A) - Fixed Rate Mortgage Model Form Page 2