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 >> Loan Program / terms and conditions  
 

ADJUSTABLE Rate Mortgages                  FIXED Rate Mortgages [differences in bold]

TERMS:                                                                                 

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

TERMS: 

10,15,20, or 30 years; 30-year amortization

Personal recourse/guarantee normally required

Forward rate locks up to 30 months available

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

occasional exceptions made for unusual circumstances

Same as ARM

MINIMUM DEBT COVER:
Normally 1.2

MINIMUM DEBT COVER:

Normally 1.15

PREPAYMENT:
NO penalty or "lock in" period

PREPAYMENT:

Prepayment penalties apply; discuss with your loan officer.

APPLICATION FEE:
$250 (nonrefundable)

Same as ARM

FINANCING FEES:
Normally 3% 

[Please ask a CIC loan officer what this includes]

Negotiable for loans over $1 million


Compare your CIC bottom line with other lenders

 that charge legal and other fees separately

FINANCING FEES:

Normally 1% 

[Please ask a CIC loan officer what this includes]

Negotiable for loans over $2 million

Compare your CIC bottom line with other lenders

that charge legal and other fees separately

CONSTRUCTION INSPECTION FEE:
0.5% of construction amount

Same as ARM

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

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

Same as ARM

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