Space Coast Credit Union

Advantages:

• Level principal and interest payments for the full term of the loan
• No risk that changing market conditions will increase your monthly payments

Best Choice If:

• You're looking to borrower more than $359,650
• You plan on staying in the home long-term
• You need your monthly payments to remain fixed over the life of the loan

For example, a 30-year fixed rate loan for $500,000 with a 6.250% interest rate (6.591% APR) would require 360 monthly principal and interest payments of $3,078.59. Taxes and insurance escrows are not included. Other rates and terms are available. The terms used in this example are for illustrative purposes only and the actual terms you receive may be different depending on your individual circumstances. Loans with longer terms may increase the total number of monthly debt payments, as well as the aggregate amount paid over the mortgage term as compared to loans with shorter terms.

Advantages:

• Level principal and interest payments for the full term of the loan
• No risk that changing market conditions will increase your monthly payments
• Allows for higher loan amount qualification and enhanced buying power
• The loan balance will decrease more rapidly than a 30 Year mortgage

Best Choice If:

• You're looking to borrower more than $359,650
• You plan on staying in the home long-term
• You need your monthly payments to remain fixed over the life of the loan
• You would like to pay-off the loan balance quickly

For example, a 15-year fixed rate loan for $500,000 with a 5.625% interest rate (5.953% APR) would require 180 monthly principal and interest payments of $4,118.66. Taxes and insurance escrows are not included. Other rates and terms are available. The terms used in this example are for illustrative purposes only and the actual terms you receive may be different depending on your individual circumstances. Loans with longer terms may increase the total number of monthly debt payments, as well as the aggregate amount paid over the mortgage term as compared to loans with shorter terms.

Advantages:

• Interest rate stays fixed for first 5 years, adjusting annually thereafter
• Allows for higher loan amount qualification and enhanced buying power
• Conversion to a fixed rate is available

Best Choice If:

• You're looking to borrower more than $359,651
• Want lower initial payments
• Want the benefits of both a Fixed and ARM product

ARM Features

• Treasury Indexed ARM Interest and payment adjustment occurs every 12 months after initial fixed rate period.
• Rate caps = 2% at first adjustment, 2% per annual adjustment there after and 5% over the lifetime of the loan.
• Index = 1 yr. t-bill
• Margin = 3%

For example, on a 5/1 1-Year Constant Maturity Treasury Index (1-Year CMT) Adjustable Rate Mortgage (ARM), the interest rate and payment are fixed for the first five years of the loan. The interest rate and payment may adjust every twelve months thereafter and may not increase or decrease more than 2.0% at each twelve-month adjustment. The interest rate cannot increase more than 5% over the term of the loan. For a 5/1 1-Year CMT ARM for $500,000 with a 30-year term and an initial interest rate of 5.953% APR, repayment will consist of 60 monthly payments of $2,878.29. If the interest rate were to increase by the maximum five percentage points to 10.953% APR, then the monthly payment would increase from $2,878.29 to a maximum of $4,413.57 in the fifth year. Other rates and terms are available. The terms used in this example are for illustrative purposes only and the actual terms you receive may be different depending on your individual circumstances.