• If you plan to live in your home less than 12 years, talk to your Merrill Lynch Financial Advisor about the benefits of a fixed-to-adjustable-rate mortgage.
• This mortgage allows you to customize your rate and payment by selecting the fixed period that matches the length of time you plan to live in your home.

What are the features of a fixed-to-adjustable-rate mortgage?

• 30-year mortgage with your choice of an initial fixed-rate period of two, three, five, seven, 10, or 12 years, followed by an adjustable rate for the life of the loan term.²
• Interest-only payments available for the first 10 years on the 2, 3, 5, 7 and 10-year products. The 12-year offers interest-only payments for the full 12-year fixed-rate portion of the loan.²
• 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 available.³
• Periodic rate cap availability based on the initial fixed-rate term and the adjustment period of the remaining term of the loan.⁴

• Lifetime cap based on the loan amount and initial fixed-rate term selected.⁵

• Available for all types of one- to four-unit owner-occupied properties and New York co-ops.

¹If interest rates increase, your monthly mortgage payments may also increase. When deciding whether an adjustable-rate mortgage is right for your situation, you should consider the potential risk of rising rates 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.