Important Notices - Challenged Credit Stated Income Loans

• The loan fees do not include appraisal. Appraisals are arranged on a C.O.D. basis only. The appraiser will collect the fee from you directly.
   
• The interest rates, annual percentage rate (APRs), points, and rebates shown are subject to change without notice. The fees listed above are estimates only and may change. A final itemization of fees will be provided at closing.

• Rate buy down options are available.

• B Credit = 600 middle credit score. C Credit = 550 middle credit score. D Credit = 520 middle credit score. Rates and points are illustrative for the loan assumptions made at the top of the page. The matrices for our subprime programs is extensive, so it is highly recommended that you contact us to discuss your unique situation and to obtain the most competitively priced program for your situation.

• The monthly payment amount shown includes principal, interest, and mortgage insurance, if required. Your actual monthly payment will be higher if an escrow/impound account is established or required.
  
   
• Your APR will vary based on your final loan amount and finance charges.
  
   
• All rate quotes are based on the assumption of a 30 day lock on a single family primary residence with establishing an escrow account for taxes and homeowner's insurance. Your final rate will depend upon your unique credit history and type of loan you are trying to qualify for. In order to receive a final rate and closing cost quote, an application must be submitted and a Loan Officer from Mortgages First will call you with your final decision.
  
   
• The $99 application fee collected from you at time of application will be applied toward the total closing costs associated with your loan. Please be reminded that this fee is non-refundable unless your loan is denied by Mortgages First.
  
   
• Special information for all adjustable rate mortgages(ARM): The APR, interest rate and principal and interest payment are subject to increase after consummation. Please refer to the following examples of a 30 year ARM loan.
  
  
   
• 3 Year ARM:
  Interest Only Option: For example, on a $10,000, 30 year loan with an initial interest rate of 4.0% (this is an initial interest rate that was in effect in March, 2003), the maximum amount the interest rate under this program can increase is 6 percentage points to 10%. The Monthly Payment can rise from an initial payment of $33.33 to a maximum of $88.42 in the sixth year.
  
  To determine how much your monthly payment would be under the same scenario, divide your mortgage amount by $10,000; then multiply the quotient by the monthly payment amount. For example, a $100,000 loan made under the conditions described above, the initial payment would be $333.30 ($100,000 / $10,000 = $10; $10 x $33.33). The maximum payment amount would be $884.20 ($100,000 / $10,000 = $10; $10 x $88.42).
  
  Fully Amortizing Option: For example, on a $10,000, 30 year loan with an initial interest rate of 4.0% (this is an initial interest rate that was in effect in March, 2003), the maximum amount the interest rate under this program can increase is 6 percentage points to 10%. The Monthly Payment can rise from an initial payment of $47.74 to a maximum of $83.55 in the sixth year.
  
  To determine how much your monthly payment would be under the same scenario, divide your mortgage amount by $10,000; then multiply the quotient by the monthly payment amount. For example, a $100,000 loan made under the conditions described above, the initial payment would be $477.40 ($100,000 / $10,000 = $10; $10 x $47.74). The maximum payment amount would be $835.50 ($100,000 / $10,000 = $10; $10 x $83.55).
  
   
• 5 Year ARM:
  Interest Only Option: For example, on a $10,000, 30 year loan with an initial interest rate of 4.25% (this is an initial interest rate that was in effect in March, 2003), the maximum amount the interest rate under this program can increase is 5 percentage points to 9.25%. The Monthly Payment can rise from an initial payment of $35.42 to a maximum of $85.64 in the sixth year.
  
  To determine how much your monthly payment would be under the same scenario, divide your mortgage amount by $10,000; then multiply the quotient by the monthly payment amount. For example, a $100,000 loan made under the conditions described above, the initial payment would be $354.42 ($100,000 / $10,000 = $10; $10 x $35.42). The maximum payment amount would be $856.40 ($100,000 / $10,000 = $10; $10 x $85.64).
  
  Fully Amortizing Option: For example, on a $10,000, 30 year loan with an initial interest rate of 4.25% (this is an initial interest rate that was in effect in March, 2003), the maximum amount the interest rate under this program can increase is 5 percentage points to 9.25%. The Monthly Payment can rise from an initial payment of $49.19 to a maximum of $77.77 in the sixth year.
  
  To determine how much your monthly payment would be under the same scenario, divide your mortgage amount by $10,000; then multiply the quotient by the monthly payment amount. For example, a $100,000 loan made under the conditions described above, the initial payment would be $491.90 ($100,000 / $10,000 = $10; $10 x $49.19). The maximum payment amount would be $777.70 ($100,000 / $10,000 = $10; $10 x $77.77).