STERLING BANK AND TRUST

Find the Right Loan at Sterling

FRACTIONAL TENANTS-IN-COMMON

5/5 Treasury Adjustable Rate Mortgage (ARM)

RATE (%)* LTV CLTV MARGIN APR (%) INITIAL MONTHLY PAYMENT AFTER INITIAL FIXED PERIOD % OF LOAN AMOUNT (POINTS)
PURCHASE & RATE / TERM REFI
3.375%
80%
90%
3.50%
3.826%
$3,094.67
3.875%
1 PT
3.500%
80%
90%
3.50%
3.829%
$3,143.31
3.875%
.5 PT
3.750%
80%
90%
3.50%
3.829%
$3,241.81
3.875%
0 PT

TIC Financing Fees

Loan origination fee is based on percentage points of loan amount buy down for chosen rate

Additional Fees*
Processing – $350
Underwriting – $600
Tax Service** – $81
Flood Cert – $11.50
Wire Fee – $26
Mers – $11.95
Attorney Review Fee – $350

* Borrowers may be required to pay other fees associated with the mortgage application, such as prepaid interest, homeowner’s insurance, property taxes, recording fees and transfer taxes.

** Tax Service Fee of $81.00 up to loan amounts of $499,999, add $10.00 for every $100,000 above $499,999

Loan Limits (Per Unit)

LTV CLTV
Up to $850,000 **
90%
90%
Up to $1,500,000
80%
90%
$1,500,001 to $2,000,000
75%
85%
2,000,001 to $3,000,000
65%
75%
SQUARE FEET ADJ. LTV CLTV
< 600 with Parking
90%
90%

LTV = Loan to Value.
CLTV = Combined Loan to Value
* Second liens with CLTV greater than 85% to be held
by a 3rd party.
**The purchase of private mortgage insurance (PMI)
will be required.

* Rate during the initial fixed period of 60 months (5/5 ARM). The interest rates above include an additional .250% interest rate discount if loan payments are automatically withdrawn (ACH) each month from a Sterling Bank & Trust
(SBT) deposit account, and direct deposit of the source of income used to qualify for the loan is maintained. If this account relationship incentive is not elected, then applicable rate is .250% higher.

After the initial fixed rate period, the adjustable interest rate and monthly payment may increase or decrease every year based on changes in the index. ARM program rate adjustments are based on the average of interbank offered rates for one-year U.S. dollar denominated deposits in the London market (1 year LIBOR), as published in the Wall Street Journal.

Loan Assumptions: Loan examples and Annual Percentage Rates (APR) are based on a $700,000 30-year loan the purchase/refinance of a primary residence single family home or tenancy in common unit with 360 monthly principal and interest payments and no prepayment penalty. We assumed closing costs are paid out of pocket and a credit score in good standing. Actual payments will vary based on each individual situation and current rates. Payments do not include amounts property taxes and hazard/flood insurance. We assumed closing costs are paid out of pocket and a credit score in good standing and assume 15 days interest paid at closing as well as additional finance charges totaling $2,960.45 which include processing, underwriting, wire, tax service fee, Flood certification, MERS registration and Attorney TIC Agreement review. The Adjustable Rate Mortgage payment adjustments are based on the current 5 year CMT plus our current margin. 

** This rate is an example of what would be the current rates based upon 3.500% (Margin) + .420% (Index) for a total of 3.875%. The index was pulled on January 12th, 2020. After the initial fixed period, the adjustable interest rate and monthly payment may increase or decrease every five years based on the Index. This ARM program rate adjustments are based on the 5 Year CMT index plus our current margin.

– 2/2/5 Caps on rate adjustment for 5/5 Treasury ARM are 2% in first adjustment, 2% in subsequent annual, and 5% lifetime cap. 
– Rate Buydown allowed. On 5/5 ARM – Each .25% rate reduction to rate costs equivalent of 1.25% charge of amount being financed. 
– Program available only to SBT deposit customers
– Income and Assets must be fully documented
– Minimum Credit Score – 75% LTV and lower: W-2 = 700 / Self-Employed = 720 75.01%-80% LTV: W-2 = 720 / Self Employed = 740
– Borrowers must have 6 months PITI (Principal, Interest, Taxes, and Insurance) equivalent reserves after closing.
– Cash-out Refinances are allowed up to 75% LTV with a .25% add-on to rate.
– Any exception requires a minimum .25% increase to rate and margin
– No Prepayment Penalties on Fractional TIC Mortgages. All Notes assumable after 12 months.
– Sterling must review and approve TIC Agreement for building before close of escrow.
– No Impounding of Property tax or HOA fees required. Borrower is still required to pay these amounts and will be responsible for ensuring that they are paid.
– Rates, terms and conditions are subject to change without notice. This is not a commitment to lend. Loans subject to credit approval.

Nicole Schaefer

Mortgage Consultant – Noe Valley
Mobile 916.812.4800
Office 415.970.9889 Ext. 12204
Efax 248.485.5104
schaefer@sterlingbank.com
NMLS # 868970
3800 24th Street San Francisco, CA 94114

CONTACT US

Phone: 415.409.8597
Email: sales@californiacrownsf.com
2135 California Street
San Francisco, CA 94115

HELENA ZALUDOVA
DRE# 01472256
415.517.2944

DALE BOUTIETTE
DRE# 1768604
415.748.1519

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