5/1 Mortgage Origination Program (5/1 MOP)

The 5/1 Mortgage Origination Program (5/1 MOP) loan is a fully-amortizing mortgage loan that offers an initial fixed interest rate and payment for the first 5 years of the loan, after which the loan converts to a 1-year adjustable rate mortgage (Standard MOP) for the remaining loan term. The maximum overall loan term is 30 years. All or any portion of the principal balance may be prepaid without penalty at any time and there is no negative amortization associated with 5/1 MOP loans. For loans funded on or after February 1, 2017, the minimum 5/1 MOP Initial Interest Rate is 3.25 percent.

Current 5/1 MOP rate

5/1 Mortgage Origination Program Interest Rate: 3.25 percent
(Effective July 13, 2020 - July 17, 2020)

NOTE:  The initial interest rate for each individual loan will be the Program rate in effect at the time of loan commitment.

The initial fixed interest rate in effect during the Fixed Rate Period of the loan is comprised of the following three (3) components:

Index: 5-year Treasury Bond Yield
Spread: J.P. Morgan U.S. Liquid Index (JULI) value
Service Fee:                .25%

Listed below are the 5/1 MOP rates in effect for the most recent four weeks:

July 13, 2020 - July 17, 2020 ................................................... 3.25%
July 6, 2020 - July 10, 2020 ..................................................... 3.25%
  June 29, 2020 - July 3, 2020 .................................................... 3.25%
June 22, 2020 - June 26, 2020 ................................................. 3.25%