ML.com    TotalMerrill.com     
      
 



 

Call 1.800.854.7154 or contact your Merrill Lynch Financial Advisor
to learn more.
MERRILL LYNCH HOME LOANS™


Term Adjustable-Rate Mortgages

A Term Adjustable-rate Mortgage (ARM) offers the security of an initial fixed-rate period of 3, 5, 7 or 10 years, followed by an adjustable rate for the life of the loan term combined with the flexibility of interest-only payments.1 The initial period payments are typically lower than most Fixed-rate mortgages.

If you plan to live in your home less than 10 years, talk to your Merrill Lynch Financial Advisor about the benefits of a Term ARM. This mortgage allows you to customize your rate and payment by selecting the initial rate period that matches the length of time you plan to live in your home.


What you should know 

  • This is a 30-year adjustable-rate mortgage with your choice of an initial fixed-rate period of three, five, seven, or 10 years, followed by an adjustable rate for the life of the loan term. (Read important information.)
  • Interest-only payments are available for the first 10 years on the 3, 5, 7 and 10-year products.
  • There are no prepayment penalties.
  • If principal payments are made, subsequent interest-only payments will be recalculated monthly based on new lower principal balance.
  • Large loan amounts are available.2
  • The periodic rate cap availability is based on the initial rate term and the adjustment period of the remaining term of the loan.3
  • The lifetime cap is based on the loan amount and initial rate term selected.4
  • You can complement select Term ARMS with our 100% financing option.
  • Conforming Plus loans, which take advantage of legislation raising conforming loan limits in particular high-cost regions, are available with certain Merrill Lynch Term ARMs, Full documentation and appraisals are required. Other restrictions apply.

  • Learn the potential risks of Interest-Only Mortgage Payments.



1 When deciding whether an adjustable-rate mortgage is right for your situation, you should consider the potential risk of rising rates and payments and such factors as how long you plan to own your home.

This is an “interest-only” mortgage that allows you to pay only the interest on the money you borrow for a certain number of years. If you only pay the amount of interest that’s due, once the interest-only period ends, you will still owe the original amount you borrowed and your monthly payment will increase—even if interest rates stay the same—because you must pay back the principal as well as interest. You should ask what the payments on your loan will be after the end of the interest-only period. If you are considering an adjustable-rate mortgage, ask what your payments can be if interest rates increase.

2 Loan amounts over $3 million may be available on a case-by-case basis to qualified applicants.

3 Does not apply to initial adjustment after the initial period.

4The rate cap depends on the term selected, loan amount and/or interest-only versus amortized payments. 
  Equal Housing Lender     Privacy & Security      Important Legal Information     Important Loan-Cost Disclosures

   Merrill Lynch Wealth Management makes available products and services offered by 
   Merrill Lynch, Pierce, Fenner & Smith Incorporated (“MLPF&S”), a registered broker-dealer and member
SIPC, and other subsidiaries of Bank of America Corporation ("BAC").

   Banking products are provided by Bank of America, N.A., and affiliated banks, members FDIC and 
   wholly owned subsidiaries of BAC.

   Investment products:

Are Not FDIC Insured

Are Not Bank Guaranteed

May Lose Value


©2011 Bank of America Corporation. All rights reserved.