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Loan Assumptions and Disclosures

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Loan assumptions and disclosures

Interest rates and annual percentage rates (APRs) are based on current market rates, are for informational purposes only, are subject to change without notice and may be subject to pricing add-ons related to property type, loan amount, loan-to-value, credit score, refinance with cash out and other variables—call for details. This is not a credit decision or a commitment to lend. Mortgage insurance may be required depending on loan guidelines. If mortgage insurance is required, the mortgage insurance premium could increase the APR and the monthly mortgage payment. Additional loan programs may be available.

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.

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 term.

Note

A written agreement in which the signer promises to pay to a named person or company a specific sum of money at a specified date or on demand.

Property type/use:
Single family residence or owner occupied

Property type/use:

Single family residence or owner occupied

{{ percentage rates.rateInputs.loantoValueRatio }} (or as user selected)

{{ percentage rates.rateInputs.loantoValueRatio }} (or as user selected)

Down payment:
{{ percentage rates.rateInputs.downpaymentPercentage }} (or as user selected)

Down payment:

{{ percentage rates.rateInputs.downpaymentPercentage }} (or as user selected)

Purchase: {{ rates.rateInputs.lockPeriod }} days. Refinance: 60 days

Purchase: {{ rates.rateInputs.lockPeriod }} days. Refinance: 60 days

Loan amount:
{{ currency rates.rateInputs.amountBorrowed }} (or as user selected)

Loan amount:

{{ currency rates.rateInputs.amountBorrowed }} (or as user selected)

Discount point(s):
As displayed

Discount point(s):

As displayed

Lien layer position:
First lien

Lien layer position:

First lien

Property location:
California is the default (until a user enters a specific ZIP code)

Property location:

California is the default (until a user enters a specific ZIP code)

Property type/use:
Single family residence/owner occupied

Property type/use:

Single family residence/owner occupied

Loan term:
As displayed (or as user selected)

Loan term:

As displayed (or as user selected)

Loan-to-value ratio

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%).

Rate lock

A period of time during which a lender makes a commitment to a borrower to provide financing at a specific interest rate.

Lien

A legal claim of a creditor on property used as security for a debt. The lien must be paid off to the creditor when the property is sold by the owner.

Loan details for 10/1 adjustable-rate mortgage (ARM)

The following monthly payments are based on a loan amount of {{ currency rates.rateInputs.amountBorrowed }} with an initial interest rate of {{ percentage rates.mortgageProducts.561.rateDetails.rate }} ({{ percentage rates.mortgageProducts.561.rateDetails.apr }} APR) for 120 months and points of {{ rates.mortgageProducts.561.rateDetails.pointsPercentage }}.

{{ rates.mortgageProducts.561.rateDetails.armAssumptions.armInitialRateResetMonths }}

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{{ currency rates.mortgageProducts.561.rateDetails.armAssumptions.armInitialPaymentAmount }}

{{ rates.mortgageProducts.561.rateDetails.armAssumptions.armFullyIndexedRateMonths }}

{{ percentage rates.mortgageProducts.561.rateDetails.armAssumptions.armFullyIndexedRate }}

{{ currency rates.mortgageProducts.561.rateDetails.armAssumptions.armFullyIndexedRatePaymentAmount }}

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Estimated interest rate

The interest rates after the initial fixed-rate period of 60 payments 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 payments

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 annually based on the then-current London Interbank Offered Rate (LIBOR) index, which will impact your monthly payment.

Adjustable rate details

{{ percentage rates.mortgageProducts.561.rateDetails.armAssumptions.armIndexRate }} (variable)

{{ percentage rates.mortgageProducts.561.rateDetails.armAssumptions.armMarginPct }}

{{ rates.mortgageProducts.561.rateDetails.armAssumptions.armRateAdjustmentFrequency }} months

{{ percentage rates.mortgageProducts.561.rateDetails.armAssumptions.armInitialAdjustableCapitalPercentage }}

{{ percentage rates.mortgageProducts.561.rateDetails.armAssumptions.armSubsequentPaymentCapitalPercentage }}

{{ percentage rates.mortgageProducts.561.rateDetails.armAssumptions.armLifeCapPercentage }}

Current index rate

The current index rate is equal to the London Interbank Offered Rate (LIBOR), which is the rate used by many financial institutions worldwide (including Bank of America) as the basis for adjustable-rate mortgages. 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. The most commonly used financial index rates are the London Interbank Offered Rate and the U.S. Prime Rate.

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.

Maximum rate and payment adjustments

After the initial fixed-rate period based on the initial interest rate and interest rate caps disclosed above, the maximum first adjusted rate for this loan will never be more than {{ percentage rates.mortgageProducts.561.rateDetails.armAssumptions.armMaximumInitialRateReset }}, with a maximum first payment of {{ currency rates.mortgageProducts.561.rateDetails.armAssumptions.armMaximumInitialRatePayment}}. The maximum lifetime rate will never be more than {{ percentage rates.mortgageProducts.561.rateDetails.armAssumptions.armMaximumLifetimeRate }} with an estimated maximum monthly payment of {{ currency rates.mortgageProducts.561.rateDetails.armAssumptions.armMaximumLifetimePayment }}.

Loan details for 7/1 adjustable-rate mortgage (ARM)

The following monthly payments are based on a loan amount of {{ currency rates.rateInputs.amountBorrowed }} with an initial interest rate of {{ percentage rates.mortgageProducts.558.rateDetails.rate }} ({{ percentage rates.mortgageProducts.558.rateDetails.apr }} APR) for 84 months and points of {{ rates.mortgageProducts.558.rateDetails.pointsPercentage }}.

{{ rates.mortgageProducts.558.rateDetails.armAssumptions.armInitialRateResetMonths }}

{{ percentage rates.mortgageProducts.558.rateDetails.armAssumptions.armInitialRate }}

{{ currency rates.mortgageProducts.558.rateDetails.armAssumptions.armInitialPaymentAmount }}

{{ rates.mortgageProducts.558.rateDetails.armAssumptions.armFullyIndexedRateMonths }}

{{ percentage rates.mortgageProducts.558.rateDetails.armAssumptions.armFullyIndexedRate }}

{{ currency rates.mortgageProducts.558.rateDetails.armAssumptions.armFullyIndexedRatePaymentAmount }}

{{ rates.mortgageProducts.558.rateDetails.armAssumptions.armSubsequentPaymentAdjustMonths_1 }}

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{{ percentage rates.mortgageProducts.558.rateDetails.armAssumptions.armSubsequentPaymentAdjustRate_3 }}

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Estimated interest rate

The interest rates after the initial fixed-rate period of 60 payments 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 payments

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 annually based on the then-current London Interbank Offered Rate (LIBOR) index, which will impact your monthly payment.

Adjustable rate details

{{ percentage rates.mortgageProducts.558.rateDetails.armAssumptions.armIndexRate }} (variable)

{{ percentage rates.mortgageProducts.558.rateDetails.armAssumptions.armMarginPct }}

{{ rates.mortgageProducts.558.rateDetails.armAssumptions.armRateAdjustmentFrequency }} months

{{ percentage rates.mortgageProducts.558.rateDetails.armAssumptions.armInitialAdjustableCapitalPercentage }}

{{ percentage rates.mortgageProducts.558.rateDetails.armAssumptions.armSubsequentPaymentCapitalPercentage }}

{{ percentage rates.mortgageProducts.558.rateDetails.armAssumptions.armLifeCapPercentage }}

Current index rate

The current index rate is equal to the London Interbank Offered Rate (LIBOR), which is the rate used by many financial institutions worldwide (including Bank of America) as the basis for adjustable-rate mortgages. 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. The most commonly used financial index rates are the London Interbank Offered Rate and the U.S. Prime Rate.

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.

Maximum rate and payment adjustments

After the initial fixed-rate period based on the initial interest rate and interest rate caps disclosed above, the maximum first adjusted rate for this loan will never be more than {{ percentage rates.mortgageProducts.558.rateDetails.armAssumptions.armMaximumInitialRateReset }}, with a maximum first payment of {{ currency rates.mortgageProducts.558.rateDetails.armAssumptions.armMaximumInitialRatePayment}}. The maximum lifetime rate will never be more than {{ percentage rates.mortgageProducts.558.rateDetails.armAssumptions.armMaximumLifetimeRate }} with an estimated maximum monthly payment of {{ currency rates.mortgageProducts.558.rateDetails.armAssumptions.armMaximumLifetimePayment }}.

Loan details for 5/1 adjustable-rate mortgage (ARM)

The following monthly payments are based on a loan amount of {{ currency rates.rateInputs.amountBorrowed }} with an initial interest rate of {{ percentage rates.mortgageProducts.555.rateDetails.rate }} ({{ percentage rates.mortgageProducts.555.rateDetails.apr }} APR) for 60 months and points of {{ rates.mortgageProducts.555.rateDetails.pointsPercentage }}.

{{ rates.mortgageProducts.555.rateDetails.armAssumptions.armInitialRateResetMonths }}

{{ percentage rates.mortgageProducts.555.rateDetails.armAssumptions.armInitialRate }}

{{ currency rates.mortgageProducts.555.rateDetails.armAssumptions.armInitialPaymentAmount }}

{{ rates.mortgageProducts.555.rateDetails.armAssumptions.armFullyIndexedRateMonths }}

{{ percentage rates.mortgageProducts.555.rateDetails.armAssumptions.armFullyIndexedRate }}

{{ currency rates.mortgageProducts.555.rateDetails.armAssumptions.armFullyIndexedRatePaymentAmount }}

{{ rates.mortgageProducts.555.rateDetails.armAssumptions.armSubsequentPaymentAdjustMonths_1 }}

{{ percentage rates.mortgageProducts.555.rateDetails.armAssumptions.armSubsequentPaymentAdjustRate_1 }}

{{ currency rates.mortgageProducts.555.rateDetails.armAssumptions.armSubsequentPaymentAdjustAmount_1 }}

{{ rates.mortgageProducts.555.rateDetails.armAssumptions.armSubsequentPaymentAdjustMonths_2 }}

{{ percentage rates.mortgageProducts.555.rateDetails.armAssumptions.armSubsequentPaymentAdjustRate_2 }}

{{ currency rates.mortgageProducts.555.rateDetails.armAssumptions.armSubsequentPaymentAdjustAmount_2 }}

{{ rates.mortgageProducts.555.rateDetails.armAssumptions.armSubsequentPaymentAdjustMonths_3 }}

{{ percentage rates.mortgageProducts.555.rateDetails.armAssumptions.armSubsequentPaymentAdjustRate_3 }}

{{ currency rates.mortgageProducts.555.rateDetails.armAssumptions.armSubsequentPaymentAdjustAmount_3 }}

Estimated interest rate

The interest rates after the initial fixed-rate period of 60 payments 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 payments

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 annually based on the then-current London Interbank Offered Rate (LIBOR) index, which will impact your monthly payment.

Adjustable rate details

{{ percentage rates.mortgageProducts.555.rateDetails.armAssumptions.armIndexRate }} (variable)

{{ percentage rates.mortgageProducts.555.rateDetails.armAssumptions.armMarginPct }}

{{ rates.mortgageProducts.555.rateDetails.armAssumptions.armRateAdjustmentFrequency }} months

{{ percentage rates.mortgageProducts.555.rateDetails.armAssumptions.armInitialAdjustableCapitalPercentage }}

{{ percentage rates.mortgageProducts.555.rateDetails.armAssumptions.armSubsequentPaymentCapitalPercentage }}

{{ percentage rates.mortgageProducts.555.rateDetails.armAssumptions.armLifeCapPercentage }}

Current index rate

The current index rate is equal to the London Interbank Offered Rate (LIBOR), which is the rate used by many financial institutions worldwide (including Bank of America) as the basis for adjustable-rate mortgages. 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. The most commonly used financial index rates are the London Interbank Offered Rate and the U.S. Prime Rate.

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.

Maximum rate and payment adjustments

After the initial fixed-rate period based on the initial interest rate and interest rate caps disclosed above, the maximum first adjusted rate for this loan will never be more than {{ percentage rates.mortgageProducts.555.rateDetails.armAssumptions.armMaximumInitialRateReset }}, with a maximum first payment of {{ currency rates.mortgageProducts.555.rateDetails.armAssumptions.armMaximumInitialRatePayment}}. The maximum lifetime rate will never be more than {{ percentage rates.mortgageProducts.555.rateDetails.armAssumptions.armMaximumLifetimeRate }} with an estimated maximum monthly payment of {{ currency rates.mortgageProducts.555.rateDetails.armAssumptions.armMaximumLifetimePayment }}.

Your results are based on the purchase of a home in ZIP code {{ zipcode params.zipcode }} with an estimated purchase price of {{ currency rates.rateInputs.purchasePrice }} and an estimated down payment of {{ currency rates.rateInputs.downPayment }}.