Below are the details of our Equity Builder-Graduated Payment Mortgage.  The loan is designed to allow you to use your mortgage as a financial tool by offering a low graduated payment and rapid amortization. Use the extra cash you save to fund your child’s college education, remodel your home, fund a retirement account, pay off credit cards, buy investment property or a second home. This is a 40 year amortizing loan.

Your start rate will be 1.25%, amortized over 40 years. (6.25%APR).  Based on a loan amount of $300,000 your monthly payment (principle & interest) would be $794.54. Your payment (not rate) will gradually increase once a year until your payment reaches $1,703.22 per month (6.25%APR).
 
Below is an estimated payment schedule for the first seven years of your loan. If interest rates fall during the first seven years, your payment increases may end sooner.

Yr.    Payment   Equity Bldr   Current                Annual
          Rate          Pymt              Pymt@ 6.75%   Savings
      
 1        1.25%        $794.54           $1,297.20          $6,031.92
      
 2        1.51%        $854.13           $1,297.20         $5,316.83
      
 3        2.04%        $918.19           $1,297.20         $4,548.12
      
 4        2.59%        $987.05           $1,297.20         $3,721.75
      
 5        3.15%        $1,061.08        $1,297.20         $2,833.40
      
 6        3.38%        $1,140.66        $1,297.20         $1,878.42
      
 7        3.85%        $1,226.21        $1,297.20         $851.82
      
 TOTAL SAVINGS   $25,182.26

After the 3rd year, you can refinance back to 1.25% or best rate available, convert to an adjustable, or convert to a conventional fixed rate. If you convert to an adjustable, for your protection, your payment can not increase more than 7.50% (i.e. $7.50 per $100) from year to year. You can call to convert to a conventional fixed rate between years 3-7 of your loan, with out refinancing, reappraising, or re-qualifying. 

NOTES:
• This is not a commitment to lend and information is subject to change. This summary is intended as a basic overview. Upon loan approval you will receive disclosures based on your specific situation.

• Even though it does not make sense to prepay this loan before the 5h  year, this loan does has a  1% prepayment fee for the first three years. This fee can be waived as follows. (A) buying away the prepayment fee (B)refinancing with us (C) Purchasing a new home with us or (D) letting the buyer of your current home assume your mortgage. Think how easy it would be to sell your home at this low payment rate.

• This loan has an interest rate cap of 9.95%.  The current rate is 6.25% (Fixed Margin-3.70% + Index-2.55%). Since the margin is fixed the index would have to be 6.25% in order for the rate to reach 9.95%.  This means that the Federal Reserve would have to increase rates by approximately 3.70% (unlikely since he increased rates 2% in 2000 and we went into a recession).  Also, banks would most likely have to pay approximately 6.25% on checking and savings accounts (unlikely since they have been paying almost 0-1%). However, if this was to miraculously happen your PAYMENT CAN NOT increase more than 7.50%, (i.e. from $1,000 to  $1,075, or $75 per $1,000 of mortgage payment,  not to mention that you can always convert your loan or refinance it for free with us.