Posted on: 07/26/2016

Source: http://freddiemac.com

Hybrid ARM

20 Year Term Program 5 + 5 7 + 13 10 + 10
Fixed Term 5 years 7 years 10 years
Floating Term 15 years 13 years 10 years
Amortization 30 years 30 years 30 years
Prepay – Fixed Period 5,4,3,2,1 5,5,4,4,3,2,1 5,5,4,4,3,3,2,2,1,1
Prepay – Floating Period** 1% 1% 1%
LTV/DSCR (Top Markets) 80/1.20x 80/1.20x 80/1.20x
LTV/DSCR (Standard Markets) 75/1.25x 75/1.25x 75/1.25x
IO Period (Years) 1 2 3
Rate at PAR
Top Markets 3.21% - 3.45% 3.91% - 4.15% 4.01% - 4.25%
Standard Markets 4.11% - 4.35% 4.26% - 4.50% 4.51% - 4.75%
Yield Maintenance -10 bps -15 bps -15 bps
Graduated Alternative 3,2,1,1,1 3,3,2,2,1,1,1 3,3,3,2,2,2,1,1,1,1
+10 bps +10 bps +10 bps
Settlement to 120 Days +8 bps +8 bps +8 bps
Full Term IO* +10 bps +20 bps +20 bps

*Fixed rate period at minimum of 65% LTV and 1,40x DSCR
** Floating period prepay is waived if refinanced with Freddie Mac or property is sold

Hybrid ARM Notes:

Subject to change per Freddie Mac

  • •  Rate floor is initial fixed rate
  • •  Rate reset every 6 months based on 6 month LIBOR (amortization recalculated)
  • •  CAP Structure: Max 1% change at each reset. 5% Max lifetime change
  • •  Floating coupon is 6 month LIBOR + 275 and +325 on 5 year.

 

Fixed

Term/Amortization 5/30 7/30 10/30
Prepay - Fixed Period 5,4,3,2,1 5,5,4,4,3,2,1 5,5,4,4,3,3,2,2,1,1
LTV/DSCR (Top Markets) 80/1.20x 80/1.20x 80/1.20x
LTV/DSCR (Standard Markets) 75/1.25x 75/1.25x 75/1.25x
Rate at PAR
Top Markets 3.31% - 3.55% 3.86% - 4.10% 3.96% - 4.20%
Standard Markets 4.01% - 4.25% 4.21% - 4.45% 4.46% - 4.70%
IO Period (Years) 1 2 3
Yield Maintenance -10 bps -15 bps -15 bps
Graduated Alternative 3,2,1,1,1 3,3,2,2,1,1,1 3,3,3,2,2,2,1,1,1,1
+10 bps +10 bps +10 bps
Settlement to 120 Days +8 bps +8 bps +8 bps
Full Term IO* +15 bps +20 bps +30 bps

*Fixed rate period at minimum of 65% LTV and 1,40x DSCR

Additional Notes:

Subject to change per Freddie Mac

  • •  Rate floor is initial fixed rate
  • •  Rate reset every 6 months based on 6 month LIBOR (amortization recalculated)
  • •  CAP Structure: Max 1% change at each reset. 5% Max lifetime change
  • •  Floating coupon is 6 month LIBOR + 275 and +325 on 5 year.

 

Loan Size

$1MM - $5MM

 

LTV Reductions

>70% <65% <55%
-4 bps -8 bps -12 bps
 

DSCR Reductions

>1.30 >1.40 >1.50
-4 bps -8 bps -12 bps
 

Top Markets

@1.20x DSCR, *please contact originator for full list by County.

New York, Boston, Washington, Chicago, Los Angeles, Orange County, San Francisco, San Jose, San Diego, Minneapolis, Portland, Seattle, Miami, Denver

Standard Markets

@1.25x DSCR, *please contact originator for full list by County.

Baltimore, Sacramento, Riverside, Salt Lake City, Phoenix, Atlanta, Dallas, St. Louis, Indianapolis, Cincinnati, Kansas City, Las Vegas, Philadelphia, Charlotte, Columbus, Cleveland, Oklahoma City, Pittsburgh, Memphis, Nashville, Houston, San Antonio, Austin, Richmond, Albuquerque, New Orleans, Orlando, Tampa, Detroit, Milwaukee, Tulsa, Buffalo, Omaha, Fresno,

For additional information visit redcapitalgroup.com or contact:

Don N. Frankman
Managing Director, Head of SBL Originations
RED Mortgage Capital, LLC
E-mail: dnfrankman@redcapitalgroup.com
Office: 949.812.7951 | Mobile: 949.533.2377
800.837.5100 toll-free

In its prequalifying review, RED Mortgage Capital, LLC will attempt to estimate both the loan amount and the fees and costs associated with the transaction. Actual loan amounts and actual fees and expenses may vary from the prequalifying estimates. A prequalifying estimate is not a commitment to make a loan.