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.

Current 5/1 MOP rate

5/1 Mortgage Origination Program Interest Rate: 3.50 percent
(Effective October 27, 2014 - October 31, 2014)

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%
*The minimum 5/1 MOP Initial Interest Rate is 3.50 percent

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

  October 27, 2014 – October 31, 2014 ............................................ 3.50%
October 20, 2014 – October 24, 2014 ............................................ 3.50%
October 13, 2014 – October 17, 2014 ............................................ 3.50%
October 6, 2014 – October 10, 2014 .............................................. 3.50%