978-283-8200 | 160 Main Street, Gloucester, MA 01930 | 15 Martin Street, Essex, MA 01929 | HOURS

Loan Program Disclosure for
Adjustable Rate Mortgage Loans


5 Year Fixed - 1 Year Adjustable Rate Mortgage

This disclosure describes the features of the Adjustable Rate Mortgage (“ARM”) program you are considering. Information on other ARM programs is available upon request.

How Your Interest Rate is Determined

Your initial interest rate will be fixed and may not necessarily be based on the then value of the Index and the margin.

Following the completion of the fixed rate term of 60 months, your interest rate will be based on the value of an index described below, plus a margin. The interest rate is rounded to the nearest 1/8 of 1%.

Ask us for our current interest rate and margin. The index is the weekly average yield on United States Treasury Securities adjusted to a constant maturity of 1 year as made available by the Federal Reserve Board in the Selected Interest Rate Publication H15 and as published in The Wall Street Journal.

How Your Interest Rate Can Change

The initial interest rate will be in effect for 60 months and will then be subject to adjustment.

Your interest rate can change every 12 months thereafter.

The interest rate for the period after the first adjustment date may not vary from the interest rate of the immediately preceding term by more than 1.0 percentage points and the interest rate for the period after any subsequent Adjustment Date may not vary by more than 1.0 percentage points from the interest rate of the immediately preceding term.

Your interest rate cannot increase more than 5.0 percentage points during the term of the loan. The minimum interest rate that can apply is 4.0%.

Discounted Interest Rate

If applicable, the interest rate on your loan will be discounted from the rate which would have been applicable if the current index value had been added to the margin. Ask us about the amount of our current interest rate discount.

Premium Interest Rate

If applicable, your initial interest rate is not based on the index used to make later adjustments. Your initial interest rate will be higher than the current value of the index and the margin. Ask us for the amount of the current interest rate premium.

Construction Feature

If applicable, this program covers both a construction loan period and permanent financing. During the construction loan period, you will be required to make monthly payments of interest based on the amount you have borrowed. The Maximum Interest Rate and the Payment Example is based on the permanent loan period.

How Your Payment Can Change

Your payment can change after the first 60 months of your loan and then every 12 months thereafter based on changes in the interest rate.

Your payment will be based on the interest rate, loan balance, and loan term.

You will receive an Initial Adjustment Notice at least 210 days but not more than 240 days prior to the Adjustment Date of a payment at a new level. Subsequently, you will be notified in writing at least 60, but not more than 120 days before the due date of a Monthly Payment at a new level, or at such time as may be required by applicable law. This notice will contain information about your Index, Interest Rate, Monthly Payment Amount and Loan Balance.

Maximum Interest Rate and Payment Example

For example, on a $10,000 30 year loan with an initial interest rate of 3.875% which rate was in effect in January, 2018, the maximum amount that the interest rate can rise under this program is 5.0 percentage points, to 8.875%, and the monthly payment can rise from a first-year of $47.02 to a maximum of $73.21 in the 10th year.

Your monthly payment can increase or decrease substantially depending on changes in the interest rate. To see what your payments would be, divide your mortgage amount by $10,000; then multiply the monthly payment by that amount. For example, the monthly payment for a mortgage amount of $60,000 would be: $60,000 ÷ $10,000 = 6; 6 x $47.02 = $282.12 per month.


7 Year Fixed - 1 Year Adjustable Rate Mortgage

This disclosure describes the features of the Adjustable Rate Mortgage (“ARM”) program you are considering. Information on other ARM programs is available upon request.

How Your Interest Rate is Determined

Your initial interest rate will be fixed and may not necessarily be based on the then value of the Index and the margin.

Following the completion of the fixed rate term of 84 months, your interest rate will be based on the value of an index described below, plus a margin. The interest rate is rounded to the nearest 1/8 of 1%.

Ask us for our current interest rate and margin. The index is the weekly average yield on United States Treasury Securities adjusted to a constant maturity of 1 year as made available by the Federal Reserve Board in the Selected Interest Rate Publication H15 and as published in The Wall Street Journal.

How Your Interest Rate Can Change

The initial interest rate will be in effect for 84 months and will then be subject to adjustment.

Your interest rate can change every 12 months thereafter.

The interest rate for the period after the first adjustment date may not vary from the interest rate of the immediately preceding term by more than 1.0 percentage points and the interest rate for the period after any subsequent Adjustment Date may not vary by more than 1.0 percentage points from the interest rate of the immediately preceding term.

Your interest rate cannot increase more than 5.0 percentage points during the term of the loan. The minimum interest rate that can apply is 4.0%.

Discounted Interest Rate

If applicable, the interest rate on your loan will be discounted from the rate which would have been applicable if the current index value had been added to the margin. Ask us about the amount of our current interest rate discount.

Premium Interest Rate

If applicable, your initial interest rate is not based on the index used to make later adjustments. Your initial interest rate will be higher than the current value of the index and the margin. Ask us for the amount of the current interest rate premium.

Construction Feature

If applicable, this program covers both a construction loan period and permanent financing. During the construction loan period, you will be required to make monthly payments of interest based on the amount you have borrowed. The Maximum Interest Rate and the Payment Example is based on the permanent loan period.

How Your Payment Can Change

Your payment can change after the first 84 months of your loan and then every 12 months thereafter based on changes in the interest rate.

Your payment will be based on the interest rate, loan balance, and loan term.

You will receive an Initial Adjustment Notice at least 210 days but not more than 240 days prior to the Adjustment Date of a payment at a new level. Subsequently, you will be notified in writing at least 60, but not more than 120 days before the due date of a Monthly Payment at a new level, or at such time as may be required by applicable law. This notice will contain information about your Index, Interest Rate, Monthly Payment Amount and Loan Balance.

Maximum Interest Rate and Payment Example

For example, on a $10,000 30 year loan with an initial interest rate of 4.625% which rate was in effect in January, 2018, the maximum amount that the interest rate can rise under this program is 5.0 percentage points, to 9.625%, and the monthly payment can rise from a first-year of $51.41 to a maximum of $76.83 in the 12th year.

Your monthly payment can increase or decrease substantially depending on changes in the interest rate. To see what your payments would be, divide your mortgage amount by $10,000; then multiply the monthly payment by that amount. For example, the monthly payment for a mortgage amount of $60,000 would be: $60,000 ÷ $10,000 = 6; 6 x $51.41 = $308.46 per month.


10 Year Fixed - 1 Year Adjustable Rate Mortgage

This disclosure describes the features of the Adjustable Rate Mortgage (“ARM”) program you are considering. Information on other ARM programs is available upon request.

How Your Interest Rate is Determined

Your initial interest rate will be fixed and may not necessarily be based on the then value of the Index and the margin.

Following the completion of the fixed rate term of 120 months, your interest rate will be based on the value of an index described below, plus a margin. The interest rate is rounded to the nearest 1/8 of 1%.

Ask us for our current interest rate and margin. The index is the weekly average yield on United States Treasury Securities adjusted to a constant maturity of 1 year as made available by the Federal Reserve Board in the Selected Interest Rate Publication H15 and as published in The Wall Street Journal.

How Your Interest Rate Can Change

The initial interest rate will be in effect for 120 months and will then be subject to adjustment.

Your interest rate can change every 12 months thereafter.

The interest rate for the period after the first adjustment date may not vary from the interest rate of the immediately preceding term by more than 1.0 percentage points and the interest rate for the period after any subsequent Adjustment Date may not vary by more than 1.0 percentage points from the interest rate of the immediately preceding term.

Your interest rate cannot increase more than 5.0 percentage points during the term of the loan. The minimum interest rate that can apply is 4.0%.

Discounted Interest Rate

If applicable, the interest rate on your loan will be discounted from the rate which would have been applicable if the current index value had been added to the margin. Ask us about the amount of our current interest rate discount.

Premium Interest Rate

If applicable, your initial interest rate is not based on the index used to make later adjustments. Your initial interest rate will be higher than the current value of the index and the margin. Ask us for the amount of the current interest rate premium.

Construction Feature

If applicable, this program covers both a construction loan period and permanent financing. During the construction loan period, you will be required to make monthly payments of interest based on the amount you have borrowed. The Maximum Interest Rate and the Payment Example is based on the permanent loan period.

How Your Payment Can Change

Your payment can change after the first 120 months of your loan and then every 12 months thereafter based on changes in the interest rate.

Your payment will be based on the interest rate, loan balance, and loan term.

You will receive an Initial Adjustment Notice at least 210 days but not more than 240 days prior to the Adjustment Date of a payment at a new level. Subsequently, you will be notified in writing at least 60, but not more than 120 days before the due date of a Monthly Payment at a new level, or at such time as may be required by applicable law. This notice will contain information about your Index, Interest Rate, Monthly Payment Amount and Loan Balance.

Maximum Interest Rate and Payment Example

For example, on a $10,000 30 year loan with an initial interest rate of 4.875% which rate was in effect in January, 2018, the maximum amount that the interest rate can rise under this program is 5.0 percentage points, to 9.875%, and the monthly payment can rise from a first-year of $52.92 to a maximum of $75.53 in the 15th year.

Your monthly payment can increase or decrease substantially depending on changes in the interest rate. To see what your payments would be, divide your mortgage amount by $10,000; then multiply the monthly payment by that amount. For example, the monthly payment for a mortgage amount of $60,000 would be: $60,000 ÷ $10,000 = 6; 6 x $52.92 = $317.52 per month.



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