Bank of America 5 Yr ARM Rates

Can you tell me in detail about the Adjustable-Rate Mortgage (ARM) rates offered by Bank of America under Home Loans facility?

Adjustable-Rate Mortgage (ARM) rates offered by Bank of America assume no increase in the financial index after the initial fixed period. ARM rates and monthly payments are subject to increase after the fixed period: ARMs assume a 30-year term.


Loan details for 5/1 adjustable-rate mortgage (ARM)

The following monthly payments are based on a loan amount of $200,000.00 with an initial interest rate of 2.875% (3.705% APR) for 60 months and points of 0.878.

No. of payments Estimated interest rate layer Estimated monthly payments layer

60 2.875% $829.78

299 3.875% $924.21

1 3.875% $923.60

Adjustable Rate Details

Current index rate layer
1.605% (variable)

Margin layer
2.250%

Rate adjustment frequency layer
12 months

First adjusted interest rate cap layer
2.000%

Subsequent adjusted interest rate cap layer
2.000%

Lifetime rate cap layer
6.000%


Maximum Rate and Payment Adjustments

After the initial fixed-rate period based on the initial interest rate and interest rate caps disclosed above, the maximum first adjusted rate for the loan is never be more than 4.875%, with a maximum first payment of $1,024.21.

The maximum lifetime rate never be more than 8.875% with an estimated maximum monthly payment of $1,456.92.

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Answered By StudyChaCha Member