The following examples illustrate the important terms of some of the loan products offered by Merrill Lynch Credit Corporation. Except as otherwise stated, all examples are based on a $480,000 loan amount for non-conforming (loans above $417,000 ) and a $300,000 loan amount for conforming mortgages (loans below $417,001 ), where a one point origination fee is paid in either case. Rate and payment amounts vary based on the amount of the origination fee.
APR on all Adjustable, Fixed-to-Adjustable loans and Equity Lines of Credit may increase or decrease after closing.
For all adjustable-rate mortgages: If interest rates increase, your monthly mortgage payments may also increase. When deciding whether an adjustable-rate mortgage is right for your situation, you should consider the potential risk of rising rates and such factors as how long you plan to own your home.
Concerning interest-only mortgages: “Interest-only” mortgages allow you to pay only the interest on the money you borrow for a certain number of years. If you only pay the amount of interest that’s due, once the interest-only period ends, you will still owe the original amount you borrowed and your monthly payment will increase – even if interest rates stay the same – because you must pay back the principal as well as interest. You should ask what the payments on your loan will be after the end of the interest-only period. If you are considering an adjustable-rate mortgage, ask what your payments can be if interest rates increase.
Interest rates are set each day at 9:30 a.m. EST and generally posted to our Web site at 10:00 a.m. These rates are not guaranteed and are subject to change without notice.