Download Term Sheet
FANNIE MAE DUS®
Declining (Graduated) Prepayment Premium
BENEFITS
- Provides more flexibility with a wider prepayment window.
- Easier calculation of Prepayment Premiums generally permitted at any point in the loan term.
- Certainty of execution.
-
ELIGIBILITY
- Available for all Asset Classes.
- Available for acquisition or refinance.
- Available for purchase by third-party Investors and the Fannie Mae Multifamily Trading Desk.
-
TERM
5 – 30 years.
FIXED RATE DECLINING PREPAYMENT PREMIUM STRUCTURES
| LOAN TERM | STRUCTURE | LOCKOUT PERIOD |
| 5 Years | 5-4-3-2-1 | None |
| 7 Years | 5-4-3-2-1 | 2 Years |
| 10 Years | 5-5-4-4-3-3-2-2-1-1 | None |
| 12 Years | 5% loan years 1-4; 4% loan years 5-6; 3% loan years 7-8; 2% loan years 9-10; 1% to maturity | None |
| 15 Years | 5% loan years 1-7; 4% loan years 8-9; 3% loan years 10-11; 2% loan years 12-13; 1% to maturity. | None |
| 18 Years | 5% loan years 1-7; 4% loan years 8-9; 3% loan years 10-11; 2% loan years 12-13; 1% to maturity. | None |
| 30 Years | 5% loan years 1-7; 4% loan years 8-9; 3% loan years 10-11; 2% loan years 12-13; 1% to maturity. | None |
SARM LOAN DECLINING PREPAYMENT PREMIUM STRUCTURES
| LOAN TERM | STRUCTURE | LOCKOUT PERIOD |
| 5 Years | 5-4-3-2-1 | 1 Year |
| 7 Years | 5-4-3-2-1-1-1 | 1 Year |
| 10 Years | 5-4-3-2-1-1-1-1-1-1 | 1 Year |
HYBRID ARM LOAN DECLINING PREPAYMENT PREMIUM STRUCTURES
| LOAN TERM | STRUCTURE | LOCKOUT PERIOD |
| 7 Year Fixed / 23 Year Adjustable | 5-5-4-4-3-2-1 | None |
| 7 Year Fixed / 23 Year Adjustable | 3-3-2-2-1-1-1 | Years |
| 10 Year Fixed / 20 Year Adjustable | 5-5-4-4-3-3-2-2-1-1 | None |
| 10 Year Fixed / 20 Year Adjustable | 3-3-3-2-2-2-1-1-1-1 | None |
