Skip to Content

NY.gov Portal State Agency Listing

Translate | Disclaimer

High Cost Home Loans

A high-cost home loan is one in which the annual percentage rate (APR) of the loan at consummation is:

To assist in the determination of US Treasury rates during applicable time periods, the Department posts rates for various maturities of U.S. Treasury securities, calculated as of the 15th day of each month.

With regard to high-cost home loans and veterans, residual income is the amount of net income remaining (after deduction of debts and obligations and monthly shelter expenses) to cover family living expenses such as food, health care, clothing, and gasoline.

Subprime Lending

A subprime home loan is one in which the initial interest rate or fully indexed rate, whichever is higher, exceeds by more than 1 3/4 percentage points (for a first lien loan) or 3 3/4 percentage points (for a subordinate lien loan) the average commitment rate for loans in the northeast region with a comparable duration to the duration of a home loan as published by Freddie Mac in its weekly Primary Mortgage Market Survey (PMMS) posted in the week prior to the week the lender provides the "good faith estimate."

The comparable duration for a home loan shall be determined as follows: for an adjustable or variable home loan with an initial rate that is fixed for less than three years, the Freddie Mac survey result for a one-year adjustable rate mortgage; for an adjustable or variable home loan with an initial rate that is fixed for at least three years, the Freddie Mac survey result for a five-year hybrid adjustable rate mortgage; for a fixed rate home loan with a term of fifteen years or less, the Freddie Mac survey result for a fifteen-year fixed rate mortgage; and for a fixed rate home loan with a term of more than fifteen years, the Freddie Mac survey result for a thirty-year fixed rate mortgage.

Freddie Mac Survey results (Freddie Mac site):

* By use of this data, the user agrees that the data is provided "as is" with no warranties of any kind, express or implied, including, but not limited to, warranties of accuracy or implied warranties of merchantability or fitness for a particular purposes. Use of this data is at the user's sole risk. In no event will Freddie Mac or the Department of Financial Services be liable for any damages arising out of, or related to the data, including, but not limited to, direct, indirect, incidental, special, consequential, or punitive damages, whether under contract, tort, or any other theory of liability, even if Freddie Mac or the Department is aware of the possibility of such damages.

Updated 06/06/2014