LOAN TYPE: PORTFOLIO
POSITIONS: 1ST AND 2ND
RATE TYPE: VARIABLE
PAYMENT TYPE: INTEREST ONLY
LINE LIMITS: $50,000 – 500,000
INDEX: WSJ PRIME
TERM: 10 Yr IO/20 Yr Fixed
Annual fee: $75

ADVANTAGES:
• Flexibility- borrower can serially draw equity from the home, pay it back and re-utilize it.
• Interest-Only payments provide superior cash flow
• Interest only generated on outstanding balance

DISADVANTAGES:
• Fully-indexed rate higher than APR on conforming loans
• Exposure to changes in WSJ Prime index rate
• Subject to curtailment (can be frozen, reduced or called due)
• Annual maintenance fee