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FAQ

1.	What are Private Banking Services and why is that important to me? Answer
2.	What's so interesting about interest-only payment options? Answer
3.	What is the difference between a fixed-rate loan and an adjustable-rate loan? Answer
4.	How is an index and margin used in an ARM? Answer
5.	How do I know which type of mortgage is best for me? Answer

Q :	What are Private Banking Services and why is that important to me?
A :	Rocky Mountain Mortgage Funding works exclusively with the Private Client Banking divisions of some of America's most venerable money center banks. These institutions only provide mortgages to clients that meet minimum personal net worth, liquidity and income requirements. Private Client Services are extremely confidential and loans are customized to meet the needs of wealthy borrowers. Please call us for a confidential discussion of your borrowing goals and how our unique lending services might work for you.

Q :	What's so interesting about interest-only payment options?
A :	Many of our clients feel there are more profitable uses of their monthly cash flow than repaying principal by amortization. An interest only loan offers numerous ways to maximize the value of a dollar and ensures that your investment in your home is as beneficial to you as your other investments. Additionally, you may be able to utilize mortgage financing to take advantage of the tax deductibility of mortgage interest (check with your tax advisor to be sure). Some benefits you may enjoy from our Interest-Only Products could include: Schedule principal payments that match your income stream Maximize your tax deductibility and personal cash flow Minimizing your personal debt service

Q :	What is the difference between a fixed-rate loan and an adjustable-rate loan?
A :	With a fixed-rate mortgage, the interest rate stays the same during the life of the loan. With an adjustable-rate mortgage (ARM), the interest changes periodically, typically in relation to an index. While the monthly payments that you make with a fixed-rate mortgage are relatively stable, payments on an ARM loan will likely change. There are advantages and disadvantages to each type of mortgage, and the best way to select a loan product is by talking to us.

Q :	How is an index and margin used in an ARM?
A :	An index is an economic indicator that lenders use to set the interest rate for an ARM. Generally the interest rate that you pay is a combination of the index rate and a pre-specified margin. Three commonly used indices are the One-Year Treasury Bill, the Cost of Funds of the 11th District Federal Home Loan Bank (COFI), and the London InterBank Offering Rate (LIBOR).

Q :	How do I know which type of mortgage is best for me?
A :	There is no simple formula to determine the type of mortgage that is best for you. This choice depends on a number of factors, including your current financial picture and how long you intend to keep your house. Rocky Mountain Mortgage Funding can help you evaluate your choices and help you make the most appropriate decision.