Q = What are the terms?
(A) The ATLOC will have a twenty-four (24) month draw period, after which time any balance will convert in month twenty-five (25) to a Prime-based variable interest rate 10/25 term loan where the monthly payment adjusts with the change in Prime.
Q = Is a Prime-based variable 10/25 loan the only option available for ATLOC when the balance converts?
(A) The balance will automatically convert to the Prime-based variable interest rate 10/25 term loan. Functionality will be available in mid-2014 for customers to convert to a Prime-based or fixed rate loan with different term options.
Q = Is ATLOC priced competitively?
(A) Yes, BREF offers a rate/fee match assurance. If we cannot match or beat a competing offer (rate and fee combination) that is provided on the letterhead of a competing lender, we’ll pay your customer $200. Some restrictions apply.
Q = What property types are eligible?
(A) The standard BREF property eligibility guidelines apply which includes both owner-occupied and investor properties.
Q = Can ATLOC be in 2nd lien position?
(A) Yes, ATLOC can be in 2nd lien position. The minimum DSC for ATLOC in 2nd position is 1.45.
Q = What is the minimum monthly payment?
(A) ATLOC—during the twenty-four (24) month draw period, the minimum monthly payment will include Principal plus Interest and closely mirrors a 10/25 term loan (no interest only option). During the loan repayment period, the monthly payment is calculated based on a Prime-based variable 10/25 term loan and the payment will adjust whenever there is a change in the Prime Rate.