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Program Requirements and Disclosures

Loan Purpose: Purchase or Refinance
Occupancy: Primary Residence
Property Eligibility: Single Family, Condominiums, Double-Wide Manufactured Homes
Loan Term: 30 Years Only
Credit Score: Minimum 680
Maximum Debt to Income Ratio: Maximum 43%
Escrow: Mandatory escrow account for taxes and insurance if LTV exceeds 80%
PMI: Required if LTV exceeds 80%
Closing Cost Credit of $300: Fully executed automatic payment authorization required prior to closing

Loan Assumptions and Disclosures
Interest rates and annual percentage rates (APRs) are based on our current pricing, are for informational purposes only, are subject to change without notice, and may be subject to pricing add-ons related to property type, occupancy type, loan amount, loan to value ratio, credit score, refinance with cash out and other variables. For a customized rate quote, contact a loan officer today. Advertised loans require an escrow account (monthly collection of subject property taxes and any applicable homeowner’s insurance with your monthly principal and interest payment) if your loan to value exceeds 80%. Mortgage insurance if your loan to value exceeds 80%. APR reflects the effective cost of your loan on a yearly basis, taking into account such items as interest, most closing costs, discount points (also referred to as points), and loan origination fees. One point is 1% of the mortgage amount (for example, $1,000 on a $100,000 loan) based on the interest rate on your note layer, not on APR. If mortgage insurance is required, the mortgage insurance premium could increase the APR and the monthly mortgage payment. Adjustable-rate Mortgage (ARM) rates assume no increase in the financial index after the initial fixed period. ARM rates and monthly payments are subject to increase after the fixed period: ARMs assume a 30 year repayment term. This is not a credit decision or a commitment to lend.

Loan Details

The following example illustrates the purchase of an owner occupied home in New York State, with an estimated purchase price of $200,000 and an estimated down payment of $40,000. This example does not include escrow for taxes and insurance or PMI and assumes a borrower credit score of 720.

Property Type: Single Family Residence
Loan to Value: 80%
Down Payment: 20%
Rate Lock Period: 60 Days
Loan Amount: $160,000
Loan Term: 30 Years

Loan Details for 10/1 Flex ARM (Adjustable-Rate Mortgage)
The following monthly payments are based on a loan amount of $160,000 with an initial interest rate of 5.375% (6.322% APR) for 360 months and no loan origination points. Interest rate is as of 4/17/2023 and subject to change without notice.

Amortization Schedule:

  • 120 payments, 5.375% interest rate, $895.95

  • 239 payments, 7.75% interest rate, $1,080.33

  • 1 payment, 7.75% interest rate, $1,077.85

Adjustable Rate Details: Current Index: 4.733% (Index as of 4/17/2023, subject to change). Margin: 3%. Rate Adjustment Period: 12 Months. First Adjustment Rate Cap: 5%. Subsequent Adjustments: 1%. Lifetime Rate Cap: 5%. Maximum Life Interest Rate: 10.375%. Maximum rate and payment adjustments: After the initial fixed rate period, the maximum first adjusted rate for this loan will never be more than 10.375%, with a maximum first payment of $1,303. The maximum lifetime rate will never be more than 10.375%, with an estimated maximum monthly payment of $1,303. The minimum interest rate will never fall below 3.0%.

Loan Details for 7/1 Flex ARM (Adjustable-Rate Mortgage)
The following monthly payments are based on a loan amount of $160,000 with an initial interest rate of 5.125% (6.528% APR) for 360 months and no loan origination points.

Amortization Schedule:

  • 84 payments, 5.125% interest rate, $871.18

  • 275 payments, 7.75% interest rate, $1,096.59

  • 1 payment, 7.75% interest rate, $1,092.79

Adjustable Rate Details: Current Index: 4.733% (Index as of 4/17/2023, subject to change). Margin: 3%. Rate Adjustment Period: 12 Months. First Adjustment Rate Cap: 5%. Subsequent Adjustments: 1%. Lifetime Rate Cap: 5%. Maximum Life Interest Rate: 10.125%. Maximum rate and payment adjustments: After the initial fixed rate period, the maximum first adjusted rate for this loan will never be more than 10.125%, with a maximum first payment of $1,320. The maximum lifetime rate will never be more than 10.125%, with an estimated maximum monthly payment of $1,320. The minimum interest rate will never fall below 3.0%.

Learn More about Adjustable-Rate Mortgages with this helpful Glossary of Terms

Margin: The interest rate that is added to (or subtracted from) the index rate by the lender in order to determine adjustments to an ARM interest rate. The margin remains constant throughout the life of the mortgage and is specified in the promissory note.

Rate Adjustment Frequency: The number of months between scheduled interest rate changes.

First Adjusted Interest Rate Cap: The limit to how much the interest rate can increase when the first rate adjustment is made at the end of the initial fixed-rate period.

Subsequent Adjusted Interest Rate Cap: The limit to how much the interest rate can increase at each periodic rate adjustment following the first-rate adjustment.

Lifetime Rate Cap: A limit on how much the variable interest rate can increase during the term of a loan.

Loan to Value (LTV): The ratio, expressed as a percentage, between the unpaid principal amount of a loan (or credit limit, in the case of a line of credit) and the appraised value of the collateral. For example, if you have an $80,000 first mortgage on a home with an appraised value of $100,000, the LTV is 80% ($80,000 divided by $100,000 equals 80%).

Estimated Interest Rate: The interest rates after the initial fixed-rate period are estimates of how the rate may adjust at the end of the fixed-rate period. The interest rate after the initial period (which may be subject to adjustment or lifetime interest rate caps) is calculated by adding the margin to the then-current index rate. The index rate at the time of any scheduled adjustment could be higher or lower than shown here, which means the actual interest rate and monthly payment may also be higher or lower than shown here. This estimate is not a guarantee of future rates or payments due under the loan.

Estimated Monthly Payment: The estimated monthly payment includes principal, interest and any required mortgage insurance (for borrowers with less than a 20% down payment). The payment shown here does not include amounts for hazard insurance or property taxes, which will result in a higher actual monthly payment. After the initial fixed-rate period, the interest rate can increase or decrease every 12 months based on the then-current Secured Overnight Financing Rate (SOFR) index value (published daily by the New York Fed) plus a margin, which will impact your monthly payment. Note: OwnersChoice Funding and/or your Credit Union are not affiliated with the New York Fed. The New York Fed does not sanction, endorse, or recommend any products or services offered by OwnersChoice Funding and/or your Credit Union.

Current Index Rate: The current index rate is the Secured Overnight Financing Rate (SOFR), which is the rate used by many financial institutions worldwide (including OwnersChoice Funding and/or your Credit Union) as the basis for adjustable-rate mortgages and published daily by the New York Fed. Generally speaking, the current index rate plus the margin equals the rate you pay when you have an adjustable-rate mortgage. Generally, the index rate plus (or minus) the margin equals the new rate that will be charged, subject to any caps. Note: OwnersChoice Funding and/or Your Credit Union are not affiliated with the New York Fed. The New York Fed does not sanction, endorse, or recommend any products or services offered by OwnersChoice Funding and/or your Credit Union.