Harmony Loan

1. What is a HarmonyLoan™?

The HarmonyLoan™ is a consumer friendly mortgage product that gives greater economic security by providing member-initiated interest rate changes at the "click" of a button. In other words, when interest rates fall, you simply "click" a button to lower your rate without going through a painful, costly refinance.

2. What mortgage products are available under the HarmonyLoan™?

Conforming and Jumbo 5/1, 7/1, 10/1 ARMS and 15 year fixed.

3. Why take a HarmonyLoan™?

The HarmonyLoan™ program allows you to lower your interest rate with No Points! No Closing Costs!! No Kidding!!! Rather than go through a costly refinance that can add thousands of dollars to your loan, we offer you the ability to simply "click" a button to lower your monthly payment with no points and no closing costs when interest rates fall.

4. How does the HarmonyLoan™ work?

Members manage their own rate-reset through our state-of-the-art web technology.

  • A simple "click" will lock in new terms (interest rate & fixed period of ARM)

  • Must wait 6 months after closing before the first opportunity to "click" (reset rate)

  • After first 6 months can only "click" every 120 days

  • Loan must be current with NO late payments in past 12 months

  • When "clicking" to reset rate downward must reduce by at least 1/4%

5. What does the Member get when they "click" the reset button?

  • For the 5/1, 7/1, and 10/1 ARM the Homebuyer/Borrower receives a new fixed rate portion of their ARM with a new interest rate (possibly lower, but could stay the same or be higher, depending on market conditions). For example, if you have a 7/1 ARM and after 3 years you "click", you receive a new rate fixed for another 7 years.

  • For the 15 year fixed, the interest rate upon each "click" can only go down and never back up.

6. Why would I "click" to reset to a higher interest rate on an ARM?

  • If you have an ARM and you are nearing the end of the fixed rate portion, for example you are in your 4th year of a 5/1 ARM, you may want to "click" the button at a higher rate to lock in another five year fixed rate. Remember, if rates fall during the new 5 year fixed rate you can always "click" the button again and lower your rate.

  • If you "click" the button on the 7/1 you get a new fixed rate for seven years. If you "click" the button on the 10/1 you get a new fixed rate for ten years.

7. Do I need to qualify when I reset the rate or fixed rate period on my HarmonyLoan™?

No! There is no new appraisal, no underwriting, no credit check, no additional paperwork, and no closing to attend!!

8. Are there truly NO closing costs when I "click" the button?

Yes! Closing costs are normally associated with a refinance. Closing costs on a typical refinance can range from $2,000-$10,000 or more. We call that the OLD Way. Welcome to the NEW Way: The HarmonyLoan™! When you "click" the button to reset your rate there are NO closing costs which helps you preserve the equity in your home.

9. Will my loan term start over again?

No. When you rest your interest rate under the HarmonyLoan™ your remaining term stays the same. For example, if you "click" the button after 36 mortgage payments on a thirty year amortized HarmonyLoan™, you will still only have 27 years left on your mortgage.

10. If rates go down further, can I reset my rate again on the HarmonyLoan™?

YES! That is one of the greatest advantages of the HarmonyLoan™. You can reset your rate on the HarmonyLoan™ as many times as you want provided you meet the conditions in the HarmonyLoan™ parameters.

11. What happens if I never exercise the reset feature on my HarmonyLoan™?

The Harmony feature expires at the end of the fixed rate portion of an ARM (remains in place on a 15 year fixed rate) and the ARM would adjust to the normal terms and conditions of the note.

12. Will my principal balance ever increase?

No, since there are no closing costs associated with a HarmonyLoan™ your principal will only decrease with normal monthly mortgage payments.