Adjustable Rate Mortgage - With Discount Points Sample Clauses
The "Adjustable Rate Mortgage - With Discount Points" clause defines the terms under which a borrower's mortgage interest rate may change over time, while also specifying that the borrower pays discount points upfront to lower the initial interest rate. In practice, this means the loan starts with a lower rate due to the discount points, but the rate can adjust periodically based on a specified index or formula. This clause allows borrowers to benefit from a lower starting rate in exchange for upfront costs, while also outlining how future rate adjustments will be handled, thereby providing clarity on both immediate and long-term payment expectations.
Adjustable Rate Mortgage - With Discount Points. If the proposed Non-Prime Loan includes an Adjustable Rate Mortgage and the payment of Discount Points, Ameriquest Sales Personnel shall provide an oral disclosure in substantially the following form: “This loan includes a payment of [insert the number] discount points, a $[insert the amount of the discount points in dollars] fee you will pay at closing to lower your initial interest rate and monthly payment. You may be eligible to pay fewer discount points, but if you do that your initial interest rate and monthly payment will be higher.”