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Appendix 12-E: Section 502 Interest Rates and Amortizations 

Percent of Median Income (a)   Amortization Factor (b)
Equal to or More But Less Than Interest Rate (c) 33 Years 38 Years
00% 50.01% 1% $2.97 $2.64
50.01 55 2 3.64 3.14
55 60 3 3.99 3.68
60 65 4 4.56  
65 70 5 5.17  
70 75 6 5.81  
75 80.01 6.5 6.14  
 

Note Interest Rate (1/98)(d):

 6.75% $6.31 $6.10

 

Minimum PITI Requirements

Income

 Percent of Adjusted Income to PITI (e)
To 50% of Median 22%
50.01 to 65% of Median 24%
65.01 to 80% of Median 26%

 

(a) See median incomes in Exhibit C to 7 CFR Part 3550

(b) Dollar Payment per thousand dollars of loan per month

(c) See 3550.68 (c)(2) and Chapter 7 in HB-1-3550.  Interest rates may be reduced by 1 percent in "high cost" areas (to no lower than 1%)

(d) Loan payment may not exceed the note rate, regardless of the minimum PITI requirement

(e) PITI floor not applicable for participating loans

 

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