Conventional Mortgage Loan

The College's first mortgage rate is linked to the Long-Term Applicable Federal Rate (AFR). Although this rate changes monthly, the rate at the time a mortgage is granted is fixed for the life of the mortgage. To control volatility, the first mortgage rate will never be more than 1% above or below a twelve month rolling average of the AFR. As of April 1, 2002, the first mortgage rate is 4.83% (current rate). This first mortgage rate is available for amounts up to $180,000. For borrowings in excess of $180,000, the second mortgage rate will be 140% of the first mortgage rate. A blended interest rate will be calculated as a weighted average. Amounts borrowed under the program cannot exceed 90% of the fair market value of the property. The maximum amortization period is 25 years, or age 65, whichever comes first.

Repayment of the mortgage will be by monthly payroll deduction for loans retained by the College. Loans provided by outside lenders can be paid by monthly invoice or by direct charge to a bank account.