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									                                                                                         Pay Option ARM
                                                                                            Calculator
    Step 1:      Pick index, loan amount, line of pricing
    1 - Month      LIBOR        Loan Amt         $100,000                                     Enter data in yellow highlighted areas
                                LTV                      80 %



    Step 2:       Identify index, margin, fully indexed rate (F.I.R)*
   LIBOR             4.750% +
   Margin            3.500% +
   F.I.R*             =           8.250%                    Low Rate


    Step 3:      Identify the payment options, how to calculate, and get value
 1 Minimum Monthly Payment (start rate)                         1.000%     Payment $     $321.64               Low Payment
 2 Interest Only (Loan Amt x FIR /365 x 30)                                Payment $     $687.50
 3 Principle and Interest 30 yr term (Based on FIR)                        Payment $     $751.27                                       $429.54
 4 Principle and Interest 15 yr term (Based on FIR)                        Payment $     $970.14                                       Year 5
* Deferred Interest may occur when Minimum Payment is exercised and Interest Only option is larger.
                                                                                                                           $399.57
    Step 4:      Calculate max monthly w/payment cap                                                                        Year 4
   Year 1       Base of minimum payment                          $321.64
   Year 2            $321.64          x          1.075           $345.76                                   $371.69
   Year 3            $345.76          x          1.075           $371.69                                   Year 3
   Year 4            $371.69          x          1.075           $399.57
   Year 5            $399.57          x          1.075           $429.54                  $345.76
                                                                                           Year 2
    Step 5:      Compare to a preferred first mortgage product
   5/1 ARM         5.250%        Monthly Payment                $552.20     $321.64
   Option 3 Payment above                                        $751.27     Year 1
                                             Savings:         -$199.06
                                                                              Great Savings
        Savings if making Minimum Payment:                      $230.56

								
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