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 >> Loan Program / terms and conditions  

    ADJUSTABLE RATE MORTGAGES              

TERMS:                                                                                 

   Usually 20 years with a 25-year amortization
   Personal recourse/guarantee normally required

MAXIMUM LOAN TO VALUE:
  Normally 80% based on projected after-rehab value;

   occasional exceptions made for unusual circumstances

MINIMUM DEBT COVER:
  Normally 1.2

PREPAYMENT:
  NO penalty or "lock in" period

APPLICATION FEE:
  $250 (nonrefundable)

FINANCING FEES:
  Normally 3% 
[Includes more services than usual; ask a CIC loan officer about it]

  Negotiable for loans over $1 million


Compare your CIC bottom line with other lenders
who charge legal and    other fees separately.

CONSTRUCTION INSPECTION FEE:
   0.5% of construction amount

THIRD-PARTY REPORTS:
   Appraisal: Varies according to project size

   Environmental: Phase I on loans over $1 million, or on mixed-use

How are ARMs adjusted?

  • The 3-year mortgage rate adjusts at 250 basis points over 3-year Treasuries, and the 5-year rate adjusts at the greater of: 250 basis points over 5-year Treasuries, or 275 basis points over 3-year Treasuries.
  • The maximum adjustment for a 3-year rate is 2% at any one change, and 5% over the life of the loan.
  • For a 5-year rate, the maximum adjustment is 4% at any one change, and 6% over the life of the loan.  All adjustments and caps apply to both increases and decreases in rates.
 
 

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222 S. Riverside Plaza, Suite 2200
Chicago, IL 60606-6109