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They never learn

By Dale Terry

Real Estate Broker/Owner

December 05, 2008 02:20 PM

LendingTree Advertising Disclosures

Mortgage Rate as low as 5.5% (5.23% APR) - Disclosure current as of November 11, 2008.

The advertised loan is a 3/1 ARM (Adjustable Rate Mortgage) with a 30-year fully amortizing term.
After the initial period, the variable interest rate and payment will adjust every year and equal the total of the 12-month LIBOR index (2.8% as of November 11, 2008) plus a margin of 2.25%.
The maximum periodic change in the interest rate is 2% with a maximum rate increase of 6% above the initial interest rate.
If the interest rate adjusted to the maximum rate (which could not occur until after the fifth year), the maximum monthly payment would be $2,144 for $225,000.
There is no prepayment penalty.
The Annual Percentage Rate (APR) is variable and is subject to increase or decrease, so your payments may increase or decrease each year.
The chart below shows the interest rate, APR, and the initial monthly payment:

Payment Examples

Loan Amount Initial
Interest Rate
(for 36 months) APR Initial Monthly
Payments
(for 36 months)

$225,000 5.5% 5.23% $1,278

Disclosure Assumptions
Interest rate quoted assumes a FICO score of 720 with a maximum loan-to-value ratio of 80% on a primary residence.
The actual interest rate, APR and payment may vary based on the specific terms of the loan selected, verification of information, your credit history, the location and type of property, and other factors.
The initial interest rate is fixed for 3 years with 1 discount point and $500 in closing costs due at closing.
Not available in all states.
Rates are subject to change daily without notice.
Payment amounts shown do not include taxes or insurance.