A.R.M. Description

SUMMARY: Fixed / adjustable rate mortgage loan program with an initial fixed rate period of 3, 5 or 7 years depending on the option selected. Upon the expiration of the fixed rate period the program allows for increases or decreases to the interest rate on an annual basis. Interest only minimum payments allowed for the first 10 years. At that point the balance is amortized over the remaining 20 years and principle payments are added to the total monthly payment.

TERM: Thirty (30) years

LOAN AMOUNT: MAXIMUM: Maximum conforming loan limits for 1-to4-unit property MINIMUM: 100,000

PREPAYMENT PENALTY: None

ADJUSTABLE RATE DETAILS:

Interest rate Caps: 3/1 - 2% Initial / 2% Subsequent / 6% Lifetime 5/1 - 2% Initial / 2% Subsequent / 5% Lifetime 7/1 - 5% Initial / 2% Subsequent / 5% Lifetime

Margin: 3/1 & 7/1 - 2.875% 5/1 - 2.5%

Interest rate Floor: The floor is equal to the Margin

Index: 6 Month LIBOR

Change Date: The first Change Date is the 36^th, 60^th or 84^th payment due date depending on the chosen ARM program. There is a new Change Date every twelve (12) months thereafter.

CONVERSION OPTION: None

NEGATIVE AMORTIZATION: None

PREPAYMENT PENALTY: None