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* During the interest-only period, the borrower has the option, but not the obligation, to convert the adjustable interest rate to a fixed interest rate for periods of 1, 2, 3, 4 or 5 years. The conversion option can be exercised more than one time. If the borrower exercises a conversion option, the fixed interest rate will be based on a different index and a different margin. The customer’s right to exercise a conversion option is subject to a variety of conditions, including the customer’s payment of a conversion fee. The conversion fee will be $500 if the unpaid principal loan balance that the customer is expected to owe on the conversion date is $500,000 or less. The conversion fee will be $1000 if the unpaid principal loan balance that the customer is expected to owe on the conversion date is more than $500,000. After the conclusion of a conversion period, the interest rate once again becomes adjustable. Breakage Fees are imposed for certain early terminations of a conversion period and certain prepayments. Not all fees associated with this product are tax deductible. In particular, please consult your tax advisor regarding the deductibility of the Conversion and Breakage Fees. There are no maximum cap limits on the breakage fee amounts that may be incurred. Minimum loan limitations in Arkansas, Georgia, Maine, New Jersey, New Mexico, North Carolina and South Carolina. Not available in Massachusetts and Rhode Island. View Important Loan-Cost Disclosures
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