Definition of the HPML

In general, a higher-priced mortgage loan is one with an annual percentage rate, or APR, which is higher than a benchmark rate called the average prime offer rate.

The Average Prime Offer Rate (APOR) is an annual percentage rate based on average interest rates, fees, and other terms on mortgages being offered to highly qualified borrowers.

Your mortgage will be considered a higher-priced mortgage loan if the APR is a certain percentage higher than the APOR and depends on what types of loans you have:

·First-lien mortgages: APR is 1.5 percentage points or more higher than the APOR.

·Jumbo Loan: APR is 2.5 percentage points or more higher than the APOR.

·Subordinate-lien mortgages (2nd Lien): APR of this mortgage is 3.5 percentage points or more higher than the APOR

Requirements for the HPML Loan

A higher-priced mortgage loan will be more expensive than a mortgage with average terms. Therefore, your lender will have to take extra steps to make sure you can pay your loan back and won’t default. Your lender may have to:

·Obtain a full interior appraisal from a licensed or certified appraiser.

·Provide a second appraisal of your home for free, if it is a “flipped” home.

·In many instances, maintain an escrow account for at least five years.

AAA LENDINGS, founded in 2002, is a well-established mortgage lender in Southern California. Over the years, we have maintained our leading position in Asian American community with professional and high-quality services. We are the expert to provide solution to the toughest scenarios, at the same time, provide customers with competitive interest rate and reduce the overall costs.

Choose us. We have a wide range of loans:

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SPECIAL PROGRAM FOR INVESTMENT PROPERTY ONLY-DSCR

What‘s a “higher-priced mortgage loan”?

Definition of the HPML

Requirements for the HPML Loan

SPECIAL PROGRAM FOR INVESTMENT PROPERTY ONLY-DSCR

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