The 5/1 Adjustable-Rate Mortgage is a 30-year mortgage, with fully amortizing principal and interest payments and an initial 5-year fixed rate period. After the 5-year fixed period, the payments, interest rate and annual percentage rate may increase or decrease.
EXAMPLE: a $2,000,000 loan with a loan-to-value ratio of 75% and an applicant FICO score of 720 or above, for a purchase transaction of an owner-occupied, one-unit, single family residence in California. At the advertised rate of 4.150 % (APR 4.815 %) with 0.000 % points, which are included in the total closing costs of $0.00, the monthly payment would be $9,722.00 for the first 60 months. Beginning at month 61, assuming a new interest rate of 5.250 %, the new payment would be $10,866.14 until the next annual change date. The rate and payment may change annually based on changes to the index value.
The above example for payments beginning at month 61 was calculated using the 1 Year LIBOR index rate of 3.001 %, a margin of 2.250 %, and assumes that the 1 Year LIBOR index remains unchanged for the life of the loan. Rates, points and LIBOR index are as of 10/19/2018 12:52:22 PM and are subject to change without notice.
Rates include the OneWest Bank Relationship Discount of 0.10% off the rate for Fixed-Rate Mortgages and 0.10% off the initial fixed-rate on Adjustable-Rate Mortgages. This offer is contingent upon you opening or having an existing OneWest Bank checking account or Premium Money Market account at the time of closing for your new loan.
The monthly payments shown here do not include amounts for property taxes and insurance premiums and as a result your actual obligation will be greater. If you choose not to include the payment of taxes and insurance in your monthly loan payment amount, it is important to know that you will be responsible for the timely payment of the taxes and insurance and that these costs may be substantial.
Not all applicants will qualify for financing or the rate shown and are subject to review of credit and collateral. However, a 60-day rate lock is guaranteed for those who qualify. Pricing may vary based on your scenario (e.g. loan amount, property location, or FICO score).
With interest-only loans, your required payment will increase over time. Your loan balance will not decrease unless you pay more than the required interest-only payment during the initial stages of repayment.