Product Example Scenarios

Below are examples of fixed rate and adjustable rate mortgages mentioned on LegendHomeLending.com. The rate, APR, and monthly payment examples are for illustrative purposes only. Actual interest rates and payments will likely vary from what is listed in the examples below as mortgage rates change frequently. Some products may not be available in all areas and some restrictions may apply. Please contact a licensed mortgage professional for the most up-to-date pricing and program information.

The examples below are based upon a purchase or rate and term refinance (no cash out) transaction of a single family, primary residence. Assumed borrower credit scores of 680 and up.

Fixed Rate Examples:

30 Year Fixed Rate Mortgage
The principal and interest payment on a $150,000 30 year fixed rate mortgage at an interest rate of 4.5% and 70% loan-to-value is $760.03. The Annual Percentage Rate (APR) is 4.585% with $1,500 in fees factored into the APR (no points). Payment does not include taxes and insurance premiums. No private mortgage insurance is required with 30% equity. 30 year mortgages require monthly payments for 360 months.

20 Year Fixed Rate Mortgage
The principal and interest payment on a $150,000 20 year fixed rate mortgage at an interest rate of 4.5% and 70% loan-to-value is $948.97. The Annual Percentage Rate (APR) is 4.617% with $1,500 in fees factored into the APR (no points). Payment does not include taxes and insurance premiums. No private mortgage insurance is required with 30% equity. 20 year mortgages require monthly payments for 240 months.

15 Year Fixed Rate Mortgage
The principal and interest payment on a $150,000 15 year fixed rate mortgage at an interest rate of 4.00% and 70% loan-to-value is $1,109.53. The Annual Percentage Rate (APR) is 4.147% with $1,500 in fees factored into the APR (no points). Payment does not include taxes and insurance premiums. No private mortgage insurance is required with 30% equity. 15 year mortgages require monthly payments for 180 months.

10 Year Fixed Rate Mortgage
The principal and interest payment on a $150,000 10 year fixed rate mortgage at an interest rate of 4.00% and 70% loan-to-value is $1,518.68. The Annual Percentage Rate (APR) is 4.212% with $1,500 in fees factored into the APR (no points). Payment does not include taxes and insurance premiums. No private mortgage insurance is required with 30% equity. 10 year mortgages require monthly payments for 120 months.

Adjustable Rate Mortgage (ARM) Examples:

7/1 ARM
The principal and interest payment on a $150,000 7/1 adjustable rate mortgage at an interest rate of 4.00% and 70% loan-to-value is $716.12 at a margin of 2.5% and a current index rate of 2%. At closing, the Annual Percentage Rate (APR) is 4.544% with $1,500 in fees factored into the APR (no points). Payment does not include taxes and insurance premiums. No private mortgage insurance is required with 30% equity. 7/1 year mortgages require monthly payments for 360 months. With a 7/1 ARM, the loan has an introductory rate which remains in place for the first 7 years (84 months). After the first 7 years pass, the principal and interest payment will increase or decrease based upon value of the associated index at that time. Also, after the first 7 years, a borrower’s rate will adjust once a year as the rate becomes variable. Be sure to consult with a loan professional to learn more about adjustable rate mortgages, their margins, caps, and the indexes which the loans are tied to.

5/1 ARM
The principal and interest payment on a $150,000 5/1 adjustable rate mortgage at an interest rate of 4.00% and 70% loan-to-value is $716.12 at a margin of 2.5% and a current index rate of 2%. At closing, the Annual Percentage Rate (APR) is 4.544% with $1,500 in fees factored into the APR (no points). Payment does not include taxes and insurance premiums. No private mortgage insurance is required with 30% equity. 5/1 year mortgages require monthly payments for 360 months. With a 5/1 ARM, the loan has an introductory rate which remains in place for the first 5 years (60 months). After the first 5 years pass, the principal and interest payment will increase or decrease based upon value of the associated index at that time. Also, after the first 5 years, a borrower’s rate will adjust once a year as the rate becomes variable. Be sure to consult with a loan professional to learn more about adjustable rate mortgages, their margins, caps, and the indexes which the loans are tied to.

3/1 ARM
The principal and interest payment on a $150,000 3/1 adjustable rate mortgage at an interest rate of 4.00% and 70% loan-to-value is $716.12 at a margin of 2.5% and a current index rate of 2%. At closing, the Annual Percentage Rate (APR) is 4.544% with $1,500 in fees factored into the APR (no points). Payment does not include taxes and insurance premiums. No private mortgage insurance is required with 30% equity. 3/1 year mortgages require monthly payments for 360 months. With a 3/1 ARM, the loan has an introductory rate which remains in place for the first 3 years (36 months). After the first 3 years pass, the principal and interest payment will increase or decrease based upon value of the associated index at that time. Also, after the first 3 years, a borrower’s rate will adjust once a year as the rate becomes variable. Be sure to consult with a loan professional to learn more about adjustable rate mortgages, their margins, caps, and the indexes which the loans are tied to.

FHA Loan Examples:

30 Year Fixed Rate FHA Mortgage
The principal and interest payment on a $162,800 30 year fixed rate mortgage at an interest rate of 4.5% and 80% loan-to-value is $998.21 ($824.88 P&I + $173.33 Monthly MIP). This is based upon a $200,000 sales price with 20% down and 1.75% one time upfront mortgage insurance premium (MIP) of the base loan amount of $160,000, which works out to $2,800, and a monthly mortgage mortgage insurance premium at 1.30% of the base loan amount. The Annual Percentage Rate (APR) is 4.726% with $1,500 in fees and the 1.75% upfront MIP factored into the APR. Payment does not include taxes and insurance premiums. 30 year mortgages require monthly payments for 360 months. For home loans with a loan-to-value of 90% or less, the 1.30% MIP must be paid for the first 11 years of the loan or until the loan is paid off, whichever happens to come first.

15 Year Fixed Rate FHA Mortgage
The principal and interest payment on a $162,800 30 year fixed rate mortgage at an interest rate of 4.5% and 80% loan-to-value is $1,305.41 ($1,245.41 P&I + $60 Monthly MIP). This is based upon a $200,000 sales price with 20% down and 1.75% one time upfront mortgage insurance premium (MIP) of the base loan amount of $160,000, which works out to $2,800, and a monthly mortgage mortgage insurance premium at 0.45% of the base loan amount. The Annual Percentage Rate (APR) is 4.897% with $1,500 in fees and the 1.75% upfront MIP factored into the APR. Payment does not include taxes and insurance premiums. 15 year mortgages require monthly payments for 180 months. For home loans with a loan-to-value of 90% or less, the 0.45% MIP must be paid for the first 11 years of the loan or until the loan is paid off, whichever happens to come first.

5/1 Adjustable Rate FHA Mortgage (aka 5/1 FHA ARM)
The principal and interest payment on a $162,800 5/1 FHA ARM at an interest rate of 4.5% and 80% loan-to-value is $998.21 ($824.88 P&I + $173.33 Monthly MIP). This is based upon a $200,000 sales price with 20% down and 1.75% one time upfront mortgage insurance premium (MIP) of the base loan amount of $160,000, which works out to $2,800, and a monthly mortgage mortgage insurance premium at 1.30% of the base loan amount. The Annual Percentage Rate (APR) is 4.726% with $1,500 in fees and the 1.75% upfront MIP factored into the APR. Payment does not include taxes and insurance premiums. 5/1 FHA ARMs require monthly payments for 360 months. For home loans with a loan-to-value of 90% or less, the 1.30% MIP must be paid for the first 11 years of the loan or until the loan is paid off, whichever happens to come first. With a 5/1 FHA ARM, the loan has an introductory rate which remains in place for the first 5 years (60 months). After the first 5 years pass, the principal and interest payment will increase or decrease based upon value of the associated index at that time. Also, after the first 5 years, a borrower’s rate will adjust once a year as the rate becomes variable. Be sure to consult with a loan professional to learn more about adjustable rate mortgages, their margins, caps, and the indexes which the loans are tied to.

VA Loan Examples:

30 Year VA Fixed Rate Mortgage
The principal and interest payment on a $200,000 30 year VA fixed rate mortgage at an interest rate of 5% and 100% loan-to-value (zero down payment) is $824.88 . There are no mortgage insurance premiums (MIP) with VA loans. The Annual Percentage Rate (APR) is 5.153% with $1,500 in fees and 1% origination factored into the APR. Payment does not include taxes and insurance premiums. 30 year mortgages require monthly payments for 360 months. VA Loans are only available to eligible active duty servicemen and woman, veterans, and qualifying spouses.

15 Year VA Fixed Rate Mortgage
The principal and interest payment on a $200,000 15 year VA fixed rate mortgage at an interest rate of 5% and 100% loan-to-value (zero down payment) is $824.88. There are no mortgage insurance premiums (MIP) with VA loans. The Annual Percentage Rate (APR) is 5.264% with $1,500 in fees and 1% origination factored into the APR. Payment does not include taxes and insurance premiums. 15 year mortgages require monthly payments for 180 months. VA Loans are only available to eligible active duty servicemen and woman, veterans, and qualifying spouses.

USDA Mortgage Example:

30 Year Fixed Rate USDA Rural Housing Mortgage Loan
The principal and interest payment on a $204,000 ($200,000 loan amount + $4,000 upfront guarantee fee added to the loan) 30 year fixed rate USDA mortgage at an interest rate of 5.5% and 100% loan-to-value is $1,203.76 ($1,135.58 P&I + $68.18 Monthly MIP). This is based upon a $200,000 sales price with 0% down and 2.00% upfront guarantee fee of the base loan amount of $200,000, which works out to $4,000, and a monthly mortgage mortgage insurance premium at .40% of the base loan amount. The Annual Percentage Rate (APR) is 5.747% with $1,500 in fees and the 2.00% upfront guarantee fee factored into the APR. Payment does not include taxes and insurance premiums. 30 year mortgages require monthly payments for 360 months.

FLEX 97 Program (NOTE: Program is no longer available):

30 Year Mortgage – FNMA Flex 97
The principal and interest payment on a $194,000 30 year fixed rate mortgage at an interest rate of 6.00% and 97% loan-to-value is $1,373.30($1,163.13 P&I + $210.16 Monthly MIP). This is based upon a $200,000 sales price with 3% down and a monthly mortgage mortgage insurance premium at 1.30% of the base loan amount. The Annual Percentage Rate (APR) is 6.072% with $1,500 in fees factored into the APR. Payment does not include taxes and insurance premiums. 30 year mortgages require monthly payments for 360 months. Mortgage insurance must only be paid until the home reaches 80% loan-to-value. Consult with a mortgage professional for details on removing mortgage insurance and the FNMA Flex 97 program.

Please note that all of the terms and conditions in the program examples on this page are subject to change. Please contact a licensed mortgage professional for the most up-to-date information.