Prepayment Terms
Requirements
You must select from 3 Prepayment PremiumPrepayment PremiumFor a Mortgage Loan prepayment, amount the Borrower must pay in addition to the prepaid principal and accrued interest per the Loan Documents. options.
|
PREPAYMENT Option 1 – 5% Declining Prepayment Premium Schedule |
|||
|---|---|---|---|
|
Loan Year |
5-Year Term |
7-Year Term |
10-Year Term |
|
1 |
5% |
5% |
5% |
|
2 |
4% |
5% |
5% |
|
3 |
3% |
4% |
4% |
|
4 |
2% |
4% |
4% |
|
5 |
1% |
3% |
3% |
|
6 |
N/A |
2% |
3% |
|
7 |
N/A |
1% |
2% |
|
8 |
N/A |
N/A |
2% |
|
9 |
N/A |
N/A |
1% |
|
10 |
N/A |
N/A |
1% |
|
PREPAYMENT Option 2 – 3% Declining Prepayment Premium Schedule |
|||
|---|---|---|---|
|
Loan Year |
5-Year Term |
7-Year Term |
10-Year Term |
|
1 |
3% |
3% |
3% |
|
2 |
2% |
3% |
3% |
|
3 |
1% |
2% |
3% |
|
4 |
1% |
2% |
2% |
|
5 |
1% |
1% |
2% |
|
6 |
N/A |
1% |
2% |
|
7 |
N/A |
1% |
1% |
|
8 |
N/A |
N/A |
1% |
|
9 |
N/A |
N/A |
1% |
|
10 |
N/A |
N/A |
1% |
|
PREPAYMENT Option 3 – Standard Yield Maintenance |
|||
|---|---|---|---|
|
Loan Year |
5-Year Term |
7-Year Term |
10-Year Term |
|
Yield Maintenance Ends |
Last day of the 5th Loan YearLoan YearPeriod beginning on the date of the Note and ending on the last day of the month that is 12 full months after the date of the Note, and each successive 12-month period thereafter. |
Last day of the 7th Loan YearLoan YearPeriod beginning on the date of the Note and ending on the last day of the month that is 12 full months after the date of the Note, and each successive 12-month period thereafter. |
Last day of the 10th Loan YearLoan YearPeriod beginning on the date of the Note and ending on the last day of the month that is 12 full months after the date of the Note, and each successive 12-month period thereafter. |
If the BorrowerBorrowerPerson who is the obligor per the Note. makes a prepayment due to casualty or condemnation, no Prepayment PremiumPrepayment PremiumFor a Mortgage Loan prepayment, amount the Borrower must pay in addition to the prepaid principal and accrued interest per the Loan Documents. is due. For all other prepayments, the BorrowerBorrowerPerson who is the obligor per the Note. must pay a Prepayment PremiumPrepayment PremiumFor a Mortgage Loan prepayment, amount the Borrower must pay in addition to the prepaid principal and accrued interest per the Loan Documents. if the prepayment occurs before the Prepayment Premium Period End DatePrepayment Premium Period End DateLast date when a Borrower owes a Prepayment Premium for a voluntary Mortgage Loan prepayment. .
The BorrowerBorrowerPerson who is the obligor per the Note. may prepay the Hybrid ARM LoanHybrid ARM LoanMortgage Loan with a total term of 30 years, comprised of an initial term when interest accrues at a fixed rate, and which automatically converts to a term where interest accrues at an adjustable rate. without any Prepayment PremiumPrepayment PremiumFor a Mortgage Loan prepayment, amount the Borrower must pay in addition to the prepaid principal and accrued interest per the Loan Documents. :
- on the last day of the fixed rate term; or
- at any time during the adjustable rate term.
The Prepayment PremiumPrepayment PremiumFor a Mortgage Loan prepayment, amount the Borrower must pay in addition to the prepaid principal and accrued interest per the Loan Documents. is shared with Fannie Mae per Part V, Chapter 2: Reporting and Remitting, Section 213: Prepayment Premium Sharing using the applicable Prepayment PremiumPrepayment PremiumFor a Mortgage Loan prepayment, amount the Borrower must pay in addition to the prepaid principal and accrued interest per the Loan Documents. schedule for a fixed rate Mortgage LoanMortgage LoanMortgage debt obligation evidenced, or when made will be evidenced, by the Loan Documents, or a mortgage debt obligation with a Fannie Mae credit enhancement. .