Mortgage Rate Disclosures and Examples
Interest-Only Products
The benefit of certain mortgage options may vary depending on market conditions, your financial situation and other circumstances. When the principal and interest payment period commences, monthly payments will be higher. The principal balance will not be reduced during the period that interest-only payments are made. Interest payments are calculated based on the outstanding principal balance. A client will pay more interest over the life of the loan if they choose to make interest only payments exclusively than they would under a traditional loan with the same interest rate featuring principal and interest payments. When your interest-only period ends, your monthly mortgage payment will be recalculated to include full principal repayment over the remaining years left on the loan. Your payment may rise significantly based on the shorter remaining term and if you have an upward rate adjustment on an adjustable rate mortgage. During the interest-only period, without making principal payments towards your outstanding loan balance, home price appreciation is the only way your equity will grow. The equity in your home is the difference between its market value and the amount owed on loans secured by the property. There is also a risk that, by not paying down the balance of your loan, you may be in a situation where you owe more on your property than you could sell it for if your home value declines. The below are examples and are included for demonstration purposes only. These do not reflect current rates through Raymond James Bank.
| ARM Products | |||||||
| Loan examples, assumptions & disclosures | |||||||
| Adjustable Rate Mortgages based on a loan amount of $800,000 | |||||||
| If the loan product is… | Loan Product | ||||||
| 5-1 | 5-1 Interest Only** | 7-1 | 7-1 Interest Only** | 10-1 | 10-1 Interest Only** | 15-1 | |
| ...and an interest rate of… | Interest Rate | ||||||
| 6.250% | 6.500% | 6.375% | 6.625% | 6.500% | 6.750% | 7.000% | |
| …then the APR will be… | APR (Annual Percentage Rate) | ||||||
| 7.088% | 7.262% | 6.991% | 7.133% | 6.895% | 7.077% | 7.122% | |
| The loan will have an initial rate period of… | Initial Rate Months | ||||||
| 60 | 60 | 84 | 84 | 120 | 120 | 180 | |
| …months with an initial payment of… | Initial Payment Amount* | ||||||
| $4,925.74 | $4,333.33 | $4,990.96 | $4,416.67 | $5,056.54 | $4,500.00 | $5,322.42 | |
| …the maximum amount the interest rate can rise… | in a single year is 2% with a limit of 5% over the life of the loan. | ||||||
| * Initial Payment amounts do not include Private Mortgage Insurance, taxes, insurance, or escrow for any taxes or insurance ** Interest Only Loan Initial Payment amounts do not include payments to principal |
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| Fixed Rate Loan Products | ||||||
| Loan examples, assumptions & disclosures | ||||||
| Fixed Rate Loan based on a loan amount of $360,000 | ||||||
| If the loan product is… | Loan Product | |||||
| 15 Year Fixed | 30 Year Fixed | 30 Year FHA | 30 Year VA | |||
| ...and an interest rate of… | Interest Rate | |||||
| 5.625% | 6.000% | 7.500% | 7.500% | |||
| …then the APR will be… | APR (Annual Percentage Rate) | |||||
| 5.703% | 6.079% | 8.109% | 8.202% | |||
| The loan will have a fixed rate period of… | Fixed Rate Months | |||||
| 180 | 360 | 360 | 360 | |||
| …months with a fixed principal and interest payment* of… | Fixed Principle and Interest Payment Amount* | |||||
| $2,965.43 | $2,158.38 | $2,517.17 | $2,552.41 | |||
| …the maximum amount the interest rate can rise… | in a single year is 2% with a limit of 5% over the life of the loan. | |||||
| * Initial Payment amounts do not include Private Mortgage Insurance, taxes, insurance, or escrow for any taxes or insurance | ||||||
Property insurance is required. Flood insurance is required if property is in a designated flood zone of ‘A’ or ‘V’.
Raymond James & Associates, Inc., and your Raymond James Financial Advisor do not solicit or offer residential mortgage products and are unable to accept any residential mortgage loan applications or to offer or negotiate terms of any such loan. You will be referred to a qualified Raymond James Bank employee for your residential mortgage lending needs.
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