Mortgage Terms

(1) Interest Rate. The interest rate to be paid on all mortgage loans shall be a rate that is established by the Agency from time to time on the basis of its costs of borrowing, expenses of operation and reserves against losses due to defaults. (2) Maturity. Each mortgage will be scheduled for repayment within the shortest period consistent with the ability of the borrower to pay the required principal and interest on the mortgage and other attendant expenses, but in no case shall it have a maturity which is greater than 40 years. In addition, no mortgage shall have a maturity in excess of ninety percent of the estimated remaining economic life of the property. (3) Payments. The mortgage shall provide that payments will be due on the first of each month. Payments to principal shall commence on the first day of the second month following the date of settlement of the mortgage loan.