Wholesale Rates: Rates shown are the best quotes available to mortgage brokers, who add their markup before quoting their retail prices. Consumers cannot borrow at these wholesale rates.

Rate Adjustment: Rates are interpolated between the rate just above and the rate just below zero points.

Transaction Characteristics: Loan amount $400,000, property value $500,000, single family home purchased as permanent residence, borrower’s FICO score 800 (720 prior to 12/22/2008), full documentation of income and assets, borrower escrows taxes and insurance, lock period 60 days.

ARM Characteristics: The margin on all the ARMs is 2.25%. The index is one-year Libor on the ARMs. Maximum rates are 5% or 6% above the initial rate. The initial rate adjustment cap is 5% except for the 3-year ARM on which it is 2%. Periodic rate adjustment caps after the initial rate period are all 2%.

SOURCE: Compiled by the Mortgage Professor from data provided by Amerisave.