Important Information Regarding First Fed Adjustable Rate Mortgage Programs: Using First Fed’s 5/6 Interim ARM Loan to illustrate monthly payments on a $1 Million loan amount with 30-year amortization (360 monthly payments) as of 12/17/08, fully amortized (principal plus interest) monthly payments for the first 60 months would be fixed at $6,386.59 calculated at an interest rate of 6.600% (5.438% APR) with a 3-year pre-payment penalty. The index used would be 2.053% based on the 12-Month Average U.S. Treasury Security Rate ("12-MAT"). If the index in effect today (2.053%) did not change and if no principal was paid down, then, starting with the 61st payment, your monthly payment would decrease to $5,290.87 and would adjust semi-annually, based on the prevailing index value plus a margin of 2.60%. The fixed rate value for months 1 - 60 will no longer be effective. Your monthly payments will vary based on your specific residential mortgage needs and loan qualifications. Currently, First Federal Bank of California does not offer 30-year fixed rate mortgage loan products.
Rates and terms are subject to change without notice and may vary based on your home’s market value and dwelling type. Interest rates and Annual Percentage Rates (APRs) on adjustable rate mortgages may increase after consummation of the loan. Early repayment of a loan may result in a prepayment charge. All loans are subject to underwriting guidelines including but not limited to, credit approval, asset and income verification, and collateral evaluation. With First Fed loan programs that allow interest-only payments, the minimum monthly payment may significantly increase at the end of the interest-only period. Properties outside of California are not eligible for First Fed loan programs.
