1.95% Minimum monthly payment

The 1.95% minimum monthly payment option is fixed for the first 60 months (5 years) of the loan. On the 61st month, the minimum monthly payment recasts, or readjusts according to the fully indexed rate. The fully indexed rate is calculated using a margin (which is fixed for the life of the loan) and an economic index tied to the loan. The most common indexes used for Cash Flow Option products are the LIBOR and COFI. An Alerio representative is able to give you information about the index tied to your specific loan. The new minimum monthly payment will be fixed for one year, and will have an annual payment cap of 7.5%. A new minimum monthly payment will recast again every five years, or if the loan balance reaches 110% of the original loan amount, whichever happens first.