Mortgage Terms

(1) Interest rate. The combined interest rate shall not be less than 3% nor more than 1% below the interest rate on the current THDA single family financing. (2) Maturity. Each mortgage will be scheduled for repayment with 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 30 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.