Mortgage Cadence Document Center FenId: 10134 © 1536 02/20
Loan Number: 3270028395
Date: June 16, 2020
ARM PROGRAM DISCLOSURE
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 AND PAYMENTS ARE DETERMINED
Your interest rate will be based on an index plus a margin.
Your payment will be based on the interest rate, loan balance, and loan term. The interest rate will be based on the
following index, plus our margin of 2.750%:
The weekly average yield on United States Treasury securities adjusted to a constant maturity of one year, as
made available by the Board of Governors of the Federal Reserve System through the Federal Reserve Bank
of St. Louis (FRED).
Ask us for our current interest rate and margin. Information about the index rate can be found at:
Index values are published by the Federal Reserve Bank of St. Louis, located on the web at
[X] If this box is checked, your initial interest rate is not based on the index used to make later adjustments. Ask us for the
current amount of our adjustable rate mortgage discounts or premiums.
HOW YOUR INTEREST RATE CAN CHANGE
Your interest rate will not change for the first 60 month(s) of your loan. After the first 60 month(s) of your loan the
adjustable interest rate you will pay may change; it may then change every 12 month(s) thereafter. Each date on which
your interest rate can change is called a "Change Date" and will be described in your loan documents.
Beginning with the first Change Date, your adjustable interest rate will be based on an Index that is calculated and
provided to the general public by an administrator (the "Administrator"). As described above, the index is the weekly
average yield on United States Treasury securities adjusted to a constant maturity of one year, as made available by the
Board of Governors of the Federal Reserve System (the "Index"). Before each Change Date your new interest rate will be
calculated by adding a margin to the current value of the index. The margin may change if the Index is replaced in
accordance with the terms of the promissory note for this adjustable rate mortgage. This value is then rounded [ ] up [ ]
down [X] up or down to the nearest 0.125%. Subject to the limits described below, this rounded amount will be your new
interest rate until the next Change Date.
Your loan has a maximum and minimum interest rate. These maximum and minimum rates are determined by the initial
interest rate, the lifetime cap(s) and perhaps a ceiling and floor independent of those variables. For example, the floor
rate may be different than the starting interest rate minus the lifetime cap(s).
On the first Change Date, your interest rate cannot increase or decrease more than 2.000%. Based on an initial interest
rate of 3.125%, on the first Change Date your interest rate will not be greater than 5.125% or less than 2.750%.
Thereafter, your adjustable interest rate will never be increased or decreased on any single Change Date by more than
2.000%. Over the term of the loan, your interest rate cannot increase or decrease more than 5.000%. Based on an initial
interest rate of 3.125%, your interest rate will never be greater than 8.125% or less than the margin of 2.750%.
HOW YOUR PAYMENT CAN CHANGE
Following the initial 60 months of your loan, your monthly payment can increase or decrease substantially, it may then
change every 12 months based on changes in the interest rate. Your new payment will be due beginning with the first
payment due date after the Change Date on which the related interest rate change occurred, and will be your payment
until the first payment due date after the next Change Date.