⇒Massachusetts General Laws ch. 184 sec. 17B
⇒Consumer Handbook on Adjustable-Rate Mortgages
⇒Loan Program Disclosure for Variable Rate Mortgage Loans
- ⇒3 Year Fixed – 6 Month Adjustable
- ⇒5 Year Fixed – 6 Month Adjustable
- ⇒5 Year Fixed – 6 Month Adjustable Construction
- ⇒7 Year Fixed – 6 Month Adjustable
- ⇒10 Year Fixed – 6 Month Adjustable
Massachusetts General Laws ch. 184 sec. 17B
This disclosure is provided to you pursuant to Mass. Gen. Law Ann. Ch.184-17B.
- The responsibility of the attorney for the mortgagee is to protect the interest of the mortgagee.
- Mortgagors may, at their own expense, engage an attorney of their selection to represent their interests in the transaction.
Consumer Handbook on Adjustable-Rate Mortgages
Home Loan Tool Kit
Loan Program Disclosure for Variable Rate Mortgage Loans
3 Year Fixed – 6 Month Adjustable
20 Year Maturity
This disclosure describes the features of the Variable Rate Mortgage program you are considering. Information on other VRM 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 an index and margin. Following the completion of the fixed rate term of 36 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%.
The interest rate will be based on the index plus our margin. Ask us for our current interest rate and margin. The Index is the 30-day average SOFR Index available here: https://www.newyorkfed.org/markets/reference-rates/sofr-averages-and-index
How Your Interest Rate Can Change.
The initial interest rate will not change sooner than 36 months. Your interest rate can change every 6 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 2.0 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 nor decrease more than 5.0 percentage points during the term of the loan
Discounted Interest Rate:
If checked, 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 checked, 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 checked, 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 Examples are based on the permanent loan period.
How Your Payment Can Change.
Your payment can change every 6 months after the initial interest rate period 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 rate adjustment notice between 210 and 240 days prior to the first time your interest rate adjusts. This notice will contain an estimate of your new payment based on estimated interest rates and your estimated loan balance.
You will be notified in writing at least 30, but no more than 90 days prior to the due date of the first payment at the adjusted level. This notice will contain information about your interest rates, payment amount, and loan balance.
Maximum Interest Rate and Payment Example.
For example, on a $10,000 20 year loan with an initial interest rate of 9.00% which rate was in effect in May 2024, the maximum amount that the interest rate can rise under this program is 5.0 percentage points, to 14.00% and the monthly payment can rise from a first year payment of $89.97 to a maximum of $119.60 in the 66th month.
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 $89.97 = $539.82 per month.
© 2024 Bankers Group Purchasing, Waltham MA – (5/24) 40630
5 Year Fixed – 6 Month Adjustable
0 Points
30 Year Maturity
Loan Program Disclosure for Variable Rate Mortgage Loans
This disclosure describes the features of the Variable Rate Mortgage program you are considering. Information on other VRM 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 an index and 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%.
The interest rate will be based on the index plus our margin. Ask us for our current interest rate and margin. The Index is the 30-day average SOFR Index available here: https://www.newyorkfed.org/markets/reference-rates/sofr-averages-and-index
How Your Interest Rate Can Change.
The initial interest rate will not change sooner than 60 months. Your interest rate can change every 6 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 2.0 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 nor decrease more than 5.0 percentage points during the term of the loan.
Discounted Interest Rate.
If checked, 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 checked, your initial interest rate is not based on the index used to make later adjustments. Your interest rate will be higher than the current value of the Index and margin. Ask us for the amount of the current interest rate premium.
Construction Feature.
If checked, 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 Examples are based on the permanent loan period.
How Your Payment Can Change.
Your payment can change every 6 months after the initial interest rate period 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 rate adjustment notice between 210 and 240 days prior to the first time your interest rate adjusts. This notice will contain an estimate of your new payment based on estimated interest rates and your estimated loan balance.
You will be notified in writing at least 30, but no more than 90 days prior to the due date of the first payment at the adjusted level. This notice will contain information about your interest rates, 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 7.00% which rate was in effect in May 2024, the maximum amount that the interest rate can rise under this program is 5.0 percentage points, to 12.00% and the monthly payment can rise from a first year payment of $66.53 to a maximum of $98.40 in the 90th month.
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 $66.53 = $399.18 per month.
© 2024 Bankers Group Purchasing, Waltham MA – (5/24) 40630
5 Year Fixed – 6 Month Adjustable Construction
0 Points
30 Year Maturity
This disclosure describes the features of the Variable Rate Mortgage program you are considering. Information on other VRM 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 an index and 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%.
The interest rate will be based on the index plus our margin. Ask us for our current interest rate and margin. The Index is the 30-day average SOFR Index available here: https://www.newyorkfed.org/markets/reference-rates/sofr-averages-and-index
How Your Interest Rate Can Change.
The initial interest rate will not change sooner than 60 months. Your interest rate can change every 6 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 2.0 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 nor decrease more than 5.0 percentage points during the term of the loan.
Discounted Interest Rate.
If checked, 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 checked, your initial interest rate is not based on the index used to make later adjustments. Your interest rate will be higher than the current value of the Index and margin. Ask us for the amount of the current interest rate premium.
Construction Feature.
- If checked, 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 Examples are based on the permanent loan period.
How Your Payment Can Change.
Your payment can change every 6 months after the initial interest rate period 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 rate adjustment notice between 210 and 240 days prior to the first time your interest rate adjusts. This notice will contain an estimate of your new payment based on estimated interest rates and your estimated loan balance.
You will be notified in writing at least 30, but no more than 90 days prior to the due date of the first payment at the adjusted level. This notice will contain information about your interest rates, 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 7.250% which rate was in effect in May 2024, the maximum amount that the interest rate can rise under this program is 5.0 percentage points, to 12.250% and the monthly payment can rise from a first year payment of $68.22 to a maximum of $100.42 in the 90th month.
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 $68.22 = $409.32 per month.
© 2024 Bankers Group Purchasing, Waltham MA – (5/24) 40630
7 Year Fixed – 6 Month Adjustable
0 Points
30 Year Maturity
This disclosure describes the features of the Variable Rate Mortgage program you are considering. Information on other VRM 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 an index and 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%.
The interest rate will be based on the index plus our margin. Ask us for our current interest rate and margin. The Index is the 30-day average SOFR Index available here: https://www.newyorkfed.org/markets/reference-rates/sofr-averages-and-index
How Your Interest Rate Can Change.
The initial interest rate will not change sooner than 84 months. Your interest rate can change every 6 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 5.0 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 nor decrease more than 5.0 percentage points during the term of the loan.
Discounted Interest Rate.
If checked, 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 checked, your initial interest rate is not based on the index used to make later adjustments. Your interest rate will be higher than the current value of the Index and margin. Ask us for the amount of the current interest rate premium.
Construction Feature.
If checked, 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 Examples are based on the permanent loan period.
How Your Payment Can Change.
Your payment can change every 6 months after the initial interest rate period 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 rate adjustment notice between 210 and 240 days prior to the first time your interest rate adjusts. This notice will contain an estimate of your new payment based on estimated interest rates and your estimated loan balance.
You will be notified in writing at least 30, but no more than 90 days prior to the due date of the first payment at the adjusted level. This notice will contain information about your interest rates, 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 7.125% which rate was in effect in May 2024, the maximum amount that the interest rate can rise under this program is 5.0 percentage points, to 12.125% and the monthly payment can rise from a first year payment of $67.37 to a maximum of $98.41 in the 8th 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 $67.37 = $404.22 per month.
10 Year Fixed – 6 Month Adjustable
0 Points
30 Year Maturity
This disclosure describes the features of the Variable Rate Mortgage program you are considering. Information on other VRM 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 an index and 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%.
The interest rate will be based on the index plus our margin. Ask us for our current interest rate and margin. The Index is the 30-day average SOFR Index available here: https://www.newyorkfed.org/markets/reference-rates/sofr-averages-and-index
How Your Interest Rate Can Change.
The initial interest rate will not change sooner than 120 months. Your interest rate can change every 6 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 5.0 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 nor decrease more than 5.0 percentage points during the term of the loan.
Discounted Interest Rate.
If checked, 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 checked, your initial interest rate is not based on the index used to make later adjustments. Your interest rate will be higher than the current value of the Index and margin. Ask us for the amount of the current interest rate premium.
Construction Feature.
If checked, 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 Examples are based on the permanent loan period.
How Your Payment Can Change.
Your payment can change every 6 months after the initial interest rate period 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 rate adjustment notice between 210 and 240 days prior to the first time your interest rate adjusts. This notice will contain an estimate of your new payment based on estimated interest rates and your estimated loan balance.
You will be notified in writing at least 30, but no more than 90 days prior to the due date of the first payment at the adjusted level. This notice will contain information about your interest rates, 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 7.250% which rate was in effect in May 2024, the maximum amount that the interest rate can rise under this program is 5.0 percentage points, to 12.250% and the monthly payment can rise from a first year payment of $68.22 to a maximum of $96.54 in the 11th 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 $68.22 = $409.32 per month.
© 2024 Bankers Group Purchasing, Waltham MA – (5/24) 40630