Settlement Loans are not currently available. The examples below will give you an idea of what the terms of such loans would be today if they were available. The examples are provided to help you decide whether you want to register to receive notice that Settlement Loans are available once the settlement becomes effective.

The examples below show loan terms available on May 31, 2007 for a 30 year fixed rate loan and a 30 year variable rate loan on which the interest rate is adjustable once a year after the first five years the loan is outstanding. Many variations of loan terms will be available to qualified loan applicants.

Interest rates change over time, and could be either lower or higher when Settlement Loans become available. The interest rates shown are for borrowers and properties meeting the conditions described below. Other conditions will apply to loan availability and may apply to the interest rate on the loan.

On May 31, 2007, when this webpage was prepared, for borrowers with the best credit, the interest rate on a 30 year fixed rate Settlement Loan would have been 7.375%. A loan of $150,000 with this interest rate would require 360 monthly payments of $1,036.01.

On that date, for borrowers with the best credit, the initial interest rate on a 30 year variable rate Settlement Loan, fixed for the first five years and variable on an annual basis thereafter, would have been 7.275%. A loan of $150,000 with this interest rate would require 360 monthly payments of which the first sixty payments would be $1,025.81.

These interest rates are based on the loan amount being $150,000, with the loan amount being 80% or less of the value of the property, and upon the borrower’s debt payment to income ratio being 50% or less. If you paid off either of these loans early, you might be subject to a prepayment penalty. Loans of less than $75,000 or more than $150,000 had different interest rates and monthly payments, as did loans with loan-to-property value ratios of more than 80%. The actual interest rate on a Settlement Loan would be established after the lender obtains information about the borrower and the property and consults with the borrower about the type of loan the borrower prefers.