Jumbo ARMS - Scituate Federal Savings Bank

Jumbo Adjustable-Rate Mortgages (jumbo loan amounts):

Scituate Federal Savings Bank offers jumbo adjustable-rate mortgages (ARMs) with loan amounts from $523,751 to $1,500,000 and terms up to 40 years. ARMs are loans with interest rates that change periodically. ARMs generally have a lower initial interest rate than fixed-rate loans. The initial interest rate on an ARM is fixed for a specific period after which it might adjust annually, every three years or every five years depending on the ARM product you apply for. During the term of your ARM loan your interest rate and monthly payment may increase or decrease periodically. Our ARM interest rate changes are tied to changes in an index rate (the U.S. Treasury Securities index). The current indices are published every week in the Wall Street Journal. The index is added to a pre-disclosed amount (the Margin) to arrive at the interest rate adjustment. Any changes to the interest rate include a rate cap that limits the amount the interest rate can increase or decrease at each adjustment (currently 2%) and over the life of the loan (currently 4%). We offer rates for both conforming adjustable-rate mortgages and jumbo adjustable-rate mortgages. Please see each ARM product disclosure for full details.

With a lower initial interest rate an ARM can be easier on your budget than a fixed-rate mortgage for the same loan amount; and could also be less expensive over a long period than a fixed-rate mortgage if interest rates remain the same or go lower. However, you must weigh the risk that an increase in interest rates would lead to higher monthly payments in the future. It’s a trade-off—you get a lower initial rate with an ARM in exchange for assuming more risk over the long run. For some people in certain situations, an ARM is a good mortgage choice, especially if your income is likely to increase enough over time to cover any possible rate increase; or if you plan to make additional payments or pay the loan off early; or if you plan on selling the home soon, rising interest rates may not pose the problem they do if you plan to own the home for a long time.

You may want to contact one of our loan officers for more information before you apply.

Our First-time Homebuyer Adjustable Rate Mortgages are also available with 5% down payments for extended terms, call for details or click here.

PURCHASE:

Rates as of Tuesday, November 18, 2008
Product Description	Interest Rate	Points	APR	Payment per $1,000	Payments	Apply
Jumbo Loan 5/5 Year ARM - Purchase - 30 Year Term Caps 2% / 4% - Margin 3.50% - Maximum LTV 80%
5/5 ARM - 1 Pt	5.375%	1.000	5.773%	$5.60	Show Payments
5/5 ARM - 0 Pt	5.625%	0.000	5.778%	$5.76	Show Payments
Jumbo Loan 7/3 Year ARM - Purchase - 30 Year Term Caps 2% / 4% - Margin 4.25% - Maximum LTV 80% - 1Pt
7/3 ARM - 1 Pt	5.625%	1.000	5.844%	$5.76	Show Payments
Jumbo Loan 7/3 Year ARM - Purchase - 30 Year Term Caps 2% / 4% - Margin 4.25% - Maximum LTV 80% - 0 Pt
7/3 ARM - 0 Pt	5.875%	0.000	5.878%	$5.92	Show Payments
Jumbo Loan 5/5 Year ARM - Purchase - 40 Year Term Caps 2% / 4% - Margin 3.50% - Maximum LTV 80%
5/5 ARM - 1 Pt	5.375%	1.000	5.786%	$5.07	Show Payments
5/5 ARM - 0 Pt	5.625%	0.000	5.791%	$5.24	Show Payments
Jumbo Loan 7/3 Year ARM - Purchase - 40 Year Term Caps 2% / 4% - Margin 4.25% - Maximum LTV 80% - 1 Pt
7/3 ARM - 1 Pt	5.625%	1.000	5.562%	$5.24	Show Payments
Jumbo Loan 7/3 Year ARM - Purchase - 40 Year Term Caps 2% / 4% - Margin 4.25% - Maximum LTV 80% - 0 Pt
7/3 ARM - 0 Pt	5.875%	0.000	5.594%	$5.42	Show Payments

"Notations"

These are variable rate products. Rates and APRs may increase after the loan has been established.
All APRs above are based on the current Index.
All APRs above assume $523,751 loan amount, 20% equity in the property, and a 40-year monthly amortization, unless otherwise noted.
All APRs above will be higher for loans with a Loan-to-Value (LTV) greater than 80% as they require private mortgage insurance, which will increase the monthly payment and the APR.
Maximum loan amount for loans with 80% LTV or less is $1,500,000.
Maximum loan amount for loans with an LTV greater than 80% is $700,000.
Maximum LTVs above are based on either a purchase or cash-out refinance of a 1-family or condo, primary residence or second (vacation) home & may be different for 2-4 family properties. For no-cash-out refinances, higher LTVs may be available – call for details.
Additional Information about our 5-Year ARM Program – The interest rate, APR and payment are subject to increase and will change after the loan is established based on market-driven changes to the index. An example, for a 30-year 5-Year ARM loan (assuming a 20% down payment) at a start rate we have recently offered of 5.875%, with an APR of 6.275%, the payment schedule per $1,000.00 would be 60 payments of $5.92, 299 payments of $6.20, and 1 payment of $5.42.
Additional Information about our 7/3-Year ARM Program – The interest rate, APR and payment are subject to increase and will change after the loan is established based on market-driven changes to the index. An example, for a 30-year 7/3-Year ARM loan (assuming a 20% down payment) at a start rate we have recently offered of 6.125%, with an APR is 6.405%, the payment schedule per $1,000.00 would be 84 payments of $6.08, 275 payments of $6.01, and 1 payment of $3.71.

REFINANCE WITH CASH OUT:

Rates as of Tuesday, November 18, 2008

Product Description Interest Rate Points APR Payment per $1,000 Payments Apply

Jumbo Loan 5/5 Year ARM - Refinance w/Cash Out
30 Year Term - Caps 2% / 4% - Margin 3.50% - Maximum LTV 80%

5/5 ARM - 1 Pt 5.375% 1.000 5.773% $5.60 Show Payments

5/5 ARM - 0Pt 5.625% 0.000 5.778% $5.76 Show Payments

Jumbo Loan 7/3 Year ARM - Refinance w/Cash Out
30 Year Term - Caps 2% / 4% - Margin 4.25% - Maximum LTV 80% - 1 Pt

7/3 ARM - 1 Pt 5.625% 1.000 5.844% $5.76 Show Payments

Jumbo Loan 7/3 Year ARM - Refinance w/Cash Out
30 Year Term - Caps 2% / 4% - Margin 4.25% - Maximum LTV 80% - 0 Pt

7/3 ARM - 0 Pt 5.875% 0.000 5.878% $5.92 Show Payments

Jumbo Loan 5/5 Year ARM - Refinance w/Cash Out
40 Year Term - Caps 2% / 4% - Margin 3.50% - Maximum LTV 80%

5/5 ARM - 1 Pt 5.375% 1.000 5.786% $5.07 Show Payments

5/5 ARM - 0Pt 5.625% 0.000 5.791% $5.24 Show Payments

Jumbo Loan 7/3 Year ARM - Refinance w/Cash Out
40 Year Term - Caps 2% / 4% - Margin 4.25% - Maximum LTV 80% - 1 Pt

7/3 ARM - 1 Pt 5.625% 1.000 5.846% $5.24 Show Payments

Jumbo Loan 7/3 Year ARM - Refinance w/Cash Out
40 Year Term - Caps 2% / 4% - Margin 4.25% - Maximum LTV 80% - 0 Pt

7/3 ARM - 0 Pt 5.875% 0.000 5.878% $5.42 Show Payments

"Notations"

These are variable rate products. Rates and APRs may increase after the loan has been established.
All APRs above are based on the current Index.
All APRs above assume $523,751 loan amount, 20% equity in the property, and a 40-year monthly amortization, unless otherwise noted.
All APRs above will be higher for loans with a Loan-to-Value (LTV) greater than 80% as they require private mortgage insurance, which will increase the monthly payment and the APR.
Maximum loan amount for loans with 80% LTV or less is $1,500,000.
Maximum loan amount for loans with an LTV greater than 80% is $700,000.
Maximum LTVs above are based on either a purchase or cash-out refinance of a 1-family or condo, primary residence or second (vacation) home & may be different for 2-4 family properties. For no-cash-out refinances, higher LTVs may be available – call for details.
Additional Information about our 5-Year ARM Program – The interest rate, APR and payment are subject to increase and will change after the loan is established based on market-driven changes to the index. An example, for a 30-year 5-Year ARM loan (assuming a 20% down payment) at a start rate we have recently offered of 5.875%, with an APR of 6.275%, the payment schedule per $1,000.00 would be 60 payments of $5.92, 299 payments of $6.20, and 1 payment of $5.42.
Additional Information about our 7/3-Year ARM Program – The interest rate, APR and payment are subject to increase and will change after the loan is established based on market-driven changes to the index. An example, for a 30-year 7/3-Year ARM loan (assuming a 20% down payment) at a start rate we have recently offered of 6.125%, with an APR is 6.405%, the payment schedule per $1,000.00 would be 84 payments of $6.08, 275 payments of $6.01, and 1 payment of $3.71.

We offer construction financing for our fixed-rate and ARM products. At Scituate Federal, only one closing is necessary for construction loan financing – call for details or click here.

ALL RATES, TERMS AND PROGRAMS SUBJECT TO CHANGE WITHOUT NOTICE

The Online Mortgage Application Process

Please contact one of our Loan Officers for additional information. They would be more than happy to answer any questions you may have regarding this program or to schedule an appointment at a time and place convenient for you.