PIGGY-BACK LOANS

One of our most popular programs for purchasing a home is our Piggy-Back loan program. With this financing structure, an 80% 1st Mortgage and a 10%, 15% or 20% 2nd Mortgage are closed concurrently, eliminating the need for Private Mortgage Insurance (PMI). On an 80/10/10 (10% down), the rate on the 1st Mortgage is the same as if you were to put 20% down. On an 80/15/5 (5% down) and 80/20 (0% down) the rates are slightly higher on both the 1st and 2nd Mortgages. The 2nd Mortgage can be either an adjustable rate Home Equity Line of Credit or a fixed rate Home Equity Loan.

Potential advantages of the Piggy-Back Loan include:

1. A lower overall monthly housing expense.
2. Potential tax advantages since PMI is generally not tax deductible (consult your tax advisor).
3. Reducing a jumbo loan amount to a conforming amount with a lower interest rate.
4. Flexibility to accelerate repayment of the 2nd Mortgage.

To apply for a Piggy-Back loan, complete an online application and note "Piggy-Back" in the comments section. Or call one of our knowledgeable Loan Consultants for assistance.

30-YEAR FIXED

This loan has a fixed rate for the entire 30 year term of loan. The payment remains constant and fully pays off the loan in 30 years. This is one of the most stable products available providing the lowest risk.

30-YEAR FIXED INTEREST ONLY

This loan has a fixed rate for the entire 30 year term of the loan. For the first 10 years of the loan, interest only payments may be made. After 10 years, the loan is amortized over the remaining 20 years. Rates on this loan may be slightly higher than the 30-Year Fixed.

20-YEAR FIXED

This loan has a fixed rate for the entire 20 year term of loan. The payment is higher than the 30-Year Fixed but remains constant and fully pays off the loan in 20 years. This is one of the most stable products available providing the lowest risk.

15-YEAR FIXED

This loan has a fixed rate for the entire 15 year term of the loan. The payment is higher than the 30-Year Fixed or the 20-Year Fixed program, but remains constant, and fully pays off the loan in 15 years. This is one of the most stable products available providing the lowest risk.

10/1 ARM

This is a popular program for borrowers who plan to keep the loan more than seven but less than 10 years.

The interest rate is fixed for the first 120 months of the loan's 30 year term. At the end of the 120 months, the interest rate adjusts to the lower of:

1. The 1-Year T-Bill Index or 1-Year LIBOR Index plus 2.75%, or
2. The initial start rate plus 5%.

Thereafter, the interest rate will adjust every 12 months to the lower of:

1. The 1-Year T-Bill Index or 1-Year LIBOR Index plus 2.75%,
2. The previous rate plus 2%, or
3. The initial start rate plus 5%.

In deciding whether to offer a 10/1 ARM tied to the 1-Year T-Bill Index or one tied to the 1-Year LIBOR index, we post to our website the program that is currently offering the lowest rate for the initial 120 month fixed period. Please contact us for the current Index being used.

10/1 ARM INTEREST ONLY

Similar to the 10/1 ARM, except this loan provides the flexibility of making an interest only payment during the initial 10 year fixed rate period of the loan. After 10 years, the loan coverts to an adjustable rate mortgage and is amortized over the remaining 20 years. Rates on this loan may be slightly higher than the 10/1 ARM.

7/1 ARM

This is a popular program for borrowers who plan to keep the loan more than five but less than seven years.

The interest rate is fixed for the first 84 months of the loan's 30 year term. At the end of the 84 months, the interest rate adjusts to the lower of:

1. The 1-Year T-Bill Index or 1-Year LIBOR Index plus 2.75%, or
2. The initial start rate plus 5%.

Thereafter, the interest rate will adjust every 12 months to the lower of:

1. The 1-Year T-Bill Index or 1-Year LIBOR Index plus 2.75%,
2. The previous rate plus 2%, or
3. The initial start rate plus 5%.

In deciding whether to offer a 7/1 ARM tied to the 1-Year T-Bill Index or one tied to the 1-Year LIBOR index, we post to our website the program that is currently offering the lowest rate for the initial 84 month fixed period. Please contact us for the current Index being used.

7/1 ARM INTEREST ONLY

Similar to the 7/1 ARM, except this loan provides the flexibility of making an interest only payment during the initial seven year fixed rate period of the loan. After seven years, the loan coverts to an adjustable rate mortgage and is amortized over the remaining 23 years. Rates on this loan may be slightly higher than the 7/1 ARM.

5/1 ARM

This is a popular program for borrowers who plan to keep the loan more than three but less than five years.

The interest rate is fixed for the first 60 months of the loan's 30 year term. At the end of the 60 months, the interest rate adjusts to the lower of:

1. The 1-Year T-Bill Index or 1-Year LIBOR Index plus 2.75%, or
2. The initial start rate plus 5%.

Thereafter, the interest rate will adjust every 12 months to the lower of:

1. The 1-Year T-Bill Index or 1-Year LIBOR Index plus 2.75%,
2. The previous rate plus 2%, or
3. The initial start rate plus 5%.

In deciding whether to offer a 5/1 ARM tied to the 1-Year T-Bill Index or one tied to the 1-Year LIBOR index, we post to our website the program that is currently offering the lowest rate for the initial 60 month fixed period. Please contact us for the current Index being used.

5/1 ARM INTEREST ONLY

Similar to the 5/1 ARM, except this loan provides the flexibility of making an interest only payment during the initial five year fixed rate period of the loan. After five years, the loan coverts to an adjustable rate mortgage and is amortized over the remaining 25 years. Rates on this loan may be slightly higher than the 5/1 ARM.

3/1 ARM

This is a popular program for borrowers who plan to keep the loan less than three years.

The interest rate is fixed for the first 36 months of the loan's 30 year term. At the end of the 36 months, the interest rate adjusts to the lower of:

1. The 1-Year T-Bill Index or 1-Year LIBOR Index plus 2.75%, or
2. The initial start rate plus 2%.

Thereafter, the interest rate will adjust every 12 months to the lower of:

1. The 1-Year T-Bill Index or 1-Year LIBOR Index plus 2.75%,
2. The previous rate plus 2%, or
3. The initial start rate plus 6%.

In deciding whether to offer a 3/1 ARM tied to the 1-Year T-Bill Index or one tied to the 1-Year LIBOR index, we post to our website the program that is currently offering the lowest rate for the initial 36 month fixed period. Please contact us for the current Index being used.

3/1 ARM INTEREST ONLY

Similar to the 3/1 ARM, except this loan provides the flexibility of making an interest only payment during the initial three year fixed rate period of the loan. After three years, the loan coverts to an adjustable rate mortgage and is amortized over the remaining 27 years. Rates on this loan may be slightly higher than the 3/1 ARM.