Important Loan-Cost Disclosures

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The following examples illustrate the important terms of some of the loan products offered by Merrill Lynch Credit Corporation. Except as otherwise stated, all examples are based on a $480,000 loan amount for non-conforming (loans above $417,000 ) and a $300,000 loan amount for conforming mortgages (loans below $417,001 ), where a one point origination fee is paid in either case. Rate and payment amounts vary based on the amount of the origination fee.
 
APR on all Adjustable, Fixed-to-Adjustable loans and Equity Lines of Credit may increase or decrease after closing.
For all adjustable-rate mortgages: If 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.
Past performance is not an indicator/guarantee of future performance.
Concerning interest-only mortgages: "Interest-only" mortgages allow 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.
Interest rates are set each day at 9:30 a.m. EST and generally posted to our Web site at 10:00 a.m. These rates are not guaranteed and are subject to change without notice.
 
Rates as of Thursday, July 02, 2009, 9:30 AM
PrimeFirst Manageable RateSM Mortgage -- Fixed Rate Swap Options
Borrowers who select the PrimeFirst Manageable RateSM Mortgage have the option to switch to a fixed-rate period during the interest-only term of the mortgage. The following examples demonstrate monthly payments for each available swap option. The examples assume that each swap occurs beginning at month 13.
Loan TypeInitial Rate*APR*TermNumber of Monthly PaymentsMonthly Payment Amount
1- Year Fixed-Rate Swap Option3.375%3.375%1 year12 monthly interest-only payments during the 1-year fixed-rate swap period$1,350.00
2- Year Fixed-Rate Swap Option4.000%4.000%2 years24 monthly interest-only payments during the 2-year fixed-rate swap period$1,600.00
3- Year Fixed-Rate Swap Option4.625%4.625%3 years36 monthly interest-only payments during the 3-year fixed-rate swap period$1,850.00
4- Year Fixed-Rate Swap Option5.125%5.125%4 years48 monthly interest-only payments during the 4-year fixed-rate swap period$2,050.00
5- Year Fixed-Rate Swap Option5.500%5.500%5 years60 monthly interest-only payments during the 5-year fixed-rate swap period$2,200.00
Primefirst® LIBOR-Based Adjustable-Rate(Interest-Only)
Loan TypeInitial Rate*APR*TermNumber of Monthly PaymentsMonthly Payment Amount
1-Month Adjustment Period1.750%1.868%25 years120 monthly interest-only payments for the first 10 years$700.00
    180 monthly principal and interest payments for the remaining 15 years.$3,033.90
6-Month Adjustment Period2.750%2.856%25 years120 monthly interest-only payments for the first 10 years$1,100.00
    180 monthly principal and interest payments for the remaining 15 years.$3,257.38
*Interest rate may vary and APR may increase after closing.
Fixed-To-Adjustable-Rate (Interest-Only)
Loan TypeInitial Rate*APR*TermNumber of Monthly PaymentsMonthly Payment Amount
3-Year Fixed-To-Adjustable Interest-Only (conforming)4.250%4.091%30 years36 monthly interest-only payments for the first 3 years$1,062.50
    84 monthly interest-only payments for the next 7 years based on the 1-year Libor +2.25%$968.75
    240 monthly principal and interest payments for the remaining 20 years based on 1-year LIBOR + 2.25%$1,798.24
3-Year Fixed-To-Adjustable Interest-Only (non-conforming)4.730%3.733%30 years36 monthly interest-only payments for the first 3 years based on the initial interest rate$1,892.00
    84 monthly interest-only payments for the next 7 years based on the 6-month Libor +2.25%$1,350.00
    240 monthly principal and interest payments for the remaining 20 years based on 6-month LIBOR + 2.25%$2,753.07
5-Year Fixed-to-Adjustable Interest-Only (conforming)4.310%4.177%30 years60 monthly interest-only payments for the first 5 years$1,077.50
    60 monthly interest-only payments for the next 5 years based on the 1-year Libor +2.25%$968.75
    240 monthly principal and interest payments for the remaining 20 years based on 1-year LIBOR + 2.25%$1,798.24
5-Year Fixed-to-Adjustable Interest-Only (non-conforming)5.125%4.548%30 years60 monthly interest-only payments for the first 5 years based on the initial interest rate$2,050.00
    60 monthly interest-only payments for the next 5 years based on the 1-year Libor +2.25%$1,550.00
    240 monthly principal and interest payments for the remaining 20 years based on 1-year LIBOR + 2.25%$2,877.19
7-Year Fixed-To-Adjustable Interest-Only (conforming)4.875%4.570%30 years84 monthly interest-only payments for the first 7 years$1,218.75
    36 monthly interest-only payments for the next 3 years based on the 1-year Libor +2.25%$968.75
    240 monthly principal and interest payments for the remaining 20 years based on 1-year LIBOR + 2.25%$1,798.24
7-Year Fixed-To-Adjustable Interest-Only (non-conforming)5.875%5.174%30 years84 monthly interest-only payments for the first 7 years based on the initial interest rate$2,350.00
    36 monthly interest-only payments for the next 3 years based on the 1-year Libor +2.25%$1,550.00
    240 monthly principal and interest payments for the remaining 20 years based on 1-year LIBOR + 2.25%$2,877.19
10-Year Fixed-To-Adjustable Interest-Only (conforming)5.000%4.814%30 years120 monthly interest-only payments for the first 10 years$1,250.00
    240 monthly principal and interest payments for the remaining 20 years based on 1-year LIBOR + 2.25%$1,798.24
10-Year Fixed-To-Adjustable Interest-Only (non-conforming)6.000%5.574%30 years120 monthly interest-only payments for the first 10 years$2,400.00
    240 monthly principal and interest payments for the remaining 20 years based on 1-year LIBOR + 2.25%$2,877.19
*The initial interest rate will be in effect during the fixed-rate interest-only period. Thereafter, the rate adjusts monthly, every six months or annually. The interest rate may vary and APR may increase after closing.
Fixed-To-Adjustable-Rate (Amortized)
Loan TypeInitial Rate*APR*TermNumber of Monthly PaymentsMonthly Payment Amount
3-Year Fixed-To-Adjustable Amortized (conforming)N/AN/A30 years36 monthly fixed principal and interest payments for the first 3 yearsN/A
    324 monthly principal and interest payments for the remaining 27 years based on 1-year LIBOR + 2.25%N/A
3-Year Fixed-To-Adjustable Amortized (non-conforming)4.730%3.745%30 years36 monthly fixed principal and interest payments for the first 3 years$2,498.12
    324 monthly principal and interest payments for the remaining 27 years based on 6-month LIBOR + 2.25%$2,149.42
5-Year Fixed-to-Adjustable Amortized (conforming)4.170%4.059%30 years60 monthly fixed principal and interest payments for the first 5 years$1,461.80
    300 monthly principal and interest payments for the remaining 25 years based on 1-year LIBOR + 2.25%$1,417.43
5-Year Fixed-to-Adjustable Amortized (non-conforming)5.125%4.405%30 years60 monthly fixed principal and interest payments for the first 5 years$2,613.54
    300 monthly principal and interest payments for the remaining 25 years based on 1-year LIBOR + 2.25%$2,300.32
7-Year Fixed-To-Adjustable Amortized (conforming)4.710%4.363%30 years84 monthly fixed principal and interest payments for the first 7 years$1,557.72
    276 monthly principal and interest payments for the remaining 23 years based on 1-year LIBOR + 2.25%$1,437.14
7-Year Fixed-To-Adjustable Amortized (non-conforming)5.875%4.945%30 years84 monthly fixed principal and interest payments for the first 7 years$2,839.38
    276 monthly principal and interest payments for the remaining 23 years based on 1-year LIBOR + 2.25%$2,352.56
10-Year Fixed-To-Adjustable Amortized (conforming)4.875%4.603%30 years120 monthly fixed principal and interest payments for the first 10 years$1,587.63
    240 monthly principal and interest payments for the remaining 20 years based on 1-year LIBOR + 2.25%$1,457.19
10-Year Fixed-To-Adjustable Amortized (non-conforming)6.000%5.344%30 years120 monthly fixed principal and interest payments for the first 10 years$2,877.84
    240 monthly principal and interest payments for the remaining 20 years based on 1-year LIBOR + 2.25%$2,407.80
*Note: The initial interest rate will be in effect during the fixed-rate period. Thereafter, the rate adjusts every six months or annually. The interest rate may vary and APR may increase after closing.
Fixed-Rate (Interest-Only)
Loan TypeInitial RateAPRTermNumber of Monthly PaymentsMonthly Payment Amount
30-Year Fixed-Rate Interest-Only (conforming)5.810%5.973%30 years120 monthly interest-only payments for the first 10 years$1,452.50
    240 monthly principal and interest payments for the remaining 20 years $2,116.54
30-Year Fixed-Rate Interest-Only (non-conforming)7.000%7.157%30 years120 monthly interest-only payments for the first 10 years$2,800.00
    240 monthly principal and interest payments for the remaining 20 years $3,721.44
Fixed-Rate (Amortized)
Loan TypeInitial RateAPRTermNumber of Monthly PaymentsMonthly Payment Amount
10-Year Fixed-Rate (conforming)4.670%4.956%10 years120 monthly principal and interest payments$3,133.80
10-Year Fixed-Rate (non-conforming)9.250%9.537%10 years120 monthly principal and interest payments$6,145.57
15-Year Fixed-Rate (conforming)4.670%4.869%15 years180 monthly principal and interest payments$2,321.13
15-Year Fixed-Rate (non-conforming)5.375%5.562%15 years180 monthly principal and interest payments$3,890.23
20-Year Fixed-Rate (conforming)5.000%5.158%20 years240 monthly principal and interest payments$1,979.87
20-Year Fixed-Rate (non-conforming)11.500%11.689%20 years240 monthly principal and interest payments$5,118.86
25-Year Fixed-Rate (conforming)5.180%5.298%25 years300 monthly principal and interest payments$1,785.38
25-Year Fixed-Rate (non-conforming)11.000%11.165%25 years300 monthly principal and interest payments$4,704.54
30-Year Fixed-Rate (conforming)5.180%5.298%30 years360 monthly principal and interest payments$1,643.63
30-Year Fixed-Rate (non-conforming)6.000%6.113%30 years360 monthly principal and interest payments$2,877.84
40-Year Fixed-Rate (conforming)5.460%5.560%40 years480 monthly principal and interest payments$1,539.15
Conforming Plus*
Loan TypeInitial RateAPRTermNumber of Monthly PaymentsMonthly Payment Amount
30-Year Fixed-Rate5.250%5.358%30 years360 monthly principal and interest payments$2,650.58
*Payment Example is based on a loan amount of $480,000.
HOME EQUITY LOANS AND LINES OF CREDIT

These examples illustrate the payment terms of home equity loans and lines of credit offered by Merrill Lynch Credit Corporation. All examples are based on a $50,000 loan amount.
Interest rates are set each day at 9:30 a.m. ET and generally posted to our Web site at 10:00 a.m. These rates are not guaranteed and are subject to change without notice.

For Equity Access® Lines of Credit and Flexible FirstSM programs: No Merrill Lynch closing costs, except mortgage recording tax (as applicable). Applicable charges and mortgage recording taxes may range from zero to $18.75 per $1,000 of mortgage amount. Recording taxes on the first $200,000 of all credit lines are paid for by MLCC, the borrower is responsible for any remaining tax due on larger loan amounts. Property insurance is required to establish and maintain your line of credit. Equity Access funds may not be used to purchase, carry or trade securities or repay debt incurred to purchase, carry or trade securities.

For Equity Access® Lines of Credit and Flexible FirstSM programs: The required payment is interest only. Example assumes the monthly outstanding balance remains at $50,000. Merrill Lynch does not provide advice on tax issues. Please consult your tax advisor regarding the deductibility of mortgage interest.
"Interest-only" mortgages allow 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.
The APR is based on the prime rate as published in the "Money Rates" section of The Wall Street Journal, applying MLCC's standard underwriting criteria. Higher APRs will apply to less creditworthy borrowers. The APR may increase or decrease, but will never be less than 0.00%. The maximum APR during the life of the loan is 16%, depending on the program selected and the creditworthiness of the applicant (excluding Iowa where the APR will not exceed 21%).
To get a precise rate, please call a Merrill Lynch Loan Consultant at (800) 854-7154 for a brief telephone consultation to determine the actual rate available for your specific situation.

Home Equity and Flexible First SM Adjustable-Rate Lines of Credit
Loan TypeInitial RateAPRTermNumber of Monthly PaymentsMonthly Payment Amount
Equity Access ® 30-year Line of Credit (non-conforming) (0 points)5.250%5.250%30 years120 monthly interest-only payments for the first 10 years $218.75
    240 monthly principal and interest payments for the remaining 20 years $336.92
Equity Access ® 30-year Line of Credit (non-conforming) (1% origination fee)4.750%4.750%30 years120 monthly interest-only payments for the first 10 years $197.92
    240 monthly principal and interest payments for the remaining 20 years $323.11
Construction-to-Permanent Financing- Construction Phase
This example demonstrates monthly payments during the construction phase of Construction-to-Permanent Financing where the rate is Prime + 2.0%. Payments are interest-only based on the drawn balance of the construction line. This example assumes a drawn balance of $480,000. Upon completion of the construction phase, payments will be based on the interest rate and loan amount for the product selected for permanent financing. See payment examples above.
Construction-to-Permanent Financing- Construction Phase
Loan TypeInitial RateAPRTermNumber of Monthly PaymentsMonthly Payment Amount
Construction-to-Permanent Financing- Construction Phase5.250%5.250%1 year12 monthly interest-only payments for one year$2,100.00
Merrill Lynch Credit Corporation is an indirect wholly-owned subsidiary of Bank of America Corporation. 
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