Adjustable Rate Loans

[Current Adjustable Interest Rate] [Features & Benefits] [Frequently Asked Questions]

Adjustable rate loans are mortgage loans that have a fixed interest rate for a period of time that is less than the maturity of the loan. At the re-pricing date, the rate is reset to the effective rate for the product at the time, as set by GreenStone. The rate adjustment is not tied to an index. This process continues until maturity.

This option may be attractive if you:

Wish to lock in a rate for a selected period of time, but do not want to pay the higher rate required on a full fixed-rate loan, or
Are willing to take some interest rate risk in exchange for a lower initial rate.

This product is often priced lower than most other adjustable or fixed-rate products of the same term. Since there are no caps, the rate may have increased volatility when compared to indexed ARMs.

Adjustable Rate Products offer pricing terms of 1, 3, 5, 7, 10 and 15 years with maturities of between 5 and 30 years. While this product has some of the characteristics of an Indexed ARM loan, Adjustable Rate loans do not have an interest rate cap and are not linked to an external index.

You can lock in a rate any time from application until closing. You may be subject to the payment of a rate commitment fee, based on GreenStone's fee schedule. The rate commitment is good for 75 days, with an option to extend the commitment for up to four 30-day increments for an extension fee.

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Features and Benefits

Feature	Benefit
Competitive interest rates, often priced lower than other ARM or fixed rate products.	Minimizes your near term loan expense compared to Indexed ARM or fixed-rate loans. Cost may increase or decrease if market rates change in the future.

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Frequently Asked Questions

Question	Answer
How will I know what my new rate is and how it will affect my loan payments?	We will automatically notify you 10 days prior to your re-pricing date of your new interest rate. Your revised loan payment amount will be reported to you on your normal billing notice.
How will my rate be established at the re-pricing date?	GreenStone will establish the rates based on it's current cost of funds, operating expenses and other factors to provide a competitive rate to customers.

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