RATE
The initial rate is based on the amount of down payment as listed above. Said rate is subject to change annually with a lifetime rate cap of 18%. Annual adjustment is to be made on the day closest to the loan's anniversary date based on "Prime Rate" as listed in The Wall Street Journal. If “Prime,” as defined here, goes below 5% the rate for “Prime +” will be calculated at 5%. In other words, the minimum rate interest rate will be 6%, 7% and 8% respectively. The new rate shall be the said WSJ Prime plus the APrime +@ amount listed above that corresponds to the percentage of down payment made at closing. The maximum loan term is as shown in the above table based on the amount of down payment made at the time of the closing.
REQUIREMENTS
Financing is to be secured by a first mortgage* on the property until the financing is paid off. Payable by the buyers at the time of the closing are the buyers share of the transfer tax, prorated taxes and association fees, recording fees, the down payment less any deposit made and a $200 documentation fee. Waterford Properties is prepared to do the closings. If the buyer chooses to have an attorney handle the closing, the cost thereof is to be paid by the buyers.
(*For any financing with less than a 20% down payment the title instrument will be a Bond for a Deed.)
EXAMPLE
On a $35,000 lot, 10 year loan, and a down payment of 30%, the down payment would be would be $10,500, leaving $24,500 to be paid in 120 monthly payments with an initial interest rate of 9.75%. In the first year the payments would be $320.39 per month - a total of $3,844.68. These payments will change from year to year as the variable interest rate changes.
The buyer's transfer tax would be $77, recording fees about $15 and annual taxes for house lots vary from $ 200 to $500, based on current tax bills at the time this was written. Some subdivisions may have an annual fee which are expected to range from $150 to $350 per year per lot. Larger, remote lots and shore lots vary.
We reserve the right to change the rate and terms or cancel this offer at any time.
Buyers should find the financing that best meets their needs. Generally speaking, we believe, if the mortgage is held for the full 10 years, you will probably save money by using bank financing. Because of the up front cost of bank financing, you probably will find it less expensive to use our financing if you plan to accelerate your payments.
