3 percentage points over the year; initial rates
on 5/1 hybrid ARMs were up 0.
The initial rate
on an ARM is virtually always lower than the rate on a fixed-rate loan of comparable maturity and loan-to-value ratio.
Prior to the credit crisis, borrowers facing initial rate
resets and higher mortgage payments would have refinanced into a new lower cost mortgage.
on ARMs, however, rose by about 40 basis points over the course of the year because they typically are priced off of financial instruments with shorter maturities that match the length of the initial adjustment period.
Bondholders are required to tender their bonds for purchase at the end of the initial rate
Thus, if the initial rate
was 7 percent, the loan will never go higher than 13 percent.
The filing also seeks to establish initial rates
During the initial rate
period the SBPA will be sized to cover any mandatory tender event and will provide for the payment of both principal and an interest component of 180 days at 3.
Notably, we completed a significant Barnett Shale well during the quarter in Tarrant County for an initial rate
The bill included a rate stabilization plan for BGE that would limit the initial rate
increase to 15% for 11 months beginning July 1, 2006.
signed a Heads of Agreement with PETRONAS for the sale of natural gas from Sarawak Blocks SK 309 and SK 311 at an initial rate
of 250 to 300 million cubic feet per day for a period of up to 15 years.
No short-term rating will be assigned at this time since no optional tender is permitted during the initial rate
period of five years for the series 2006B bonds and six years for the series 2006C bonds.