Allied Mortgage Unveils 4.5% Fixed Rate Mortgage! Features Lower Interest Rate for Borrower for Sharing Future Appreciation with Lender.

Business Editors

HOUSTON--(BUSINESS WIRE)--March 6, 2001

The new "Shared Appreciation Mortgage" (SAM), a breakthrough mortgage loan featuring interest rates as low as 4.5 percent in return for a percentage of the home's future appreciation, is being made available immediately through more than 540 Allied Mortgage branches nationwide.

"It's been a long time since something this revolutionary hit the mortgage market," said Jim Hodge, CEO of Allied Mortgage Capital Corp. "This mortgage is perfect for people who are locked out of purchasing the home they desire because of increased home prices, or anyone looking for an extremely low cost loan to pay off high cost debt. I am very excited about bringing such an innovative product like this to the market which will provide such a positive impact on home ownership."

Borrowers can use SAM loans to purchase a home, refinance out of higher cost mortgages, and free-up cash to pay off high cost second mortgages and credit card debt.

The SAM allows borrowers to increase their purchasing power, reduce monthly payments on a current home, or diversify assets. The SAM carries a fixed interest rate as low as 4.5 percent, a 15- or 30-year repayment term, and an agreement by the borrower to share a percent of appreciation, if any, in the home's value after the loan was made.

"SAM customers can buy a home that might otherwise be just out of their financial reach, or they might use the SAM to obtain a low monthly payment and invest the savings in a college or retirement fund, the stock market or to pay off high cost debt such as credit cards or second mortgages," explained Hodge. "Many homeowners are saddled with credit card balances which carry rates in the 18 percent to 22 percent range and high cost second mortgages that typically have rates that can change monthly and currently average 9 percent to 12 percent. It makes perfect sense to replace this high interest rate debt with one low fixed rate."

The low fixed interest rate is determined by the amount of future appreciation the borrower agrees to share. Generally, the higher the level of appreciation that the borrower agrees to share, the lower the interest rate.

Houston-based Allied Mortgage Capital Corporation is the largest affiliated branch network mortgage company in the United States with more than 540 branches operating in 48 states, Guam, the U.S. Virgin Islands and Puerto Rico. Allied offers mortgages from more than 700 lenders including conventional fixed rate loans, debt consolidation programs, FHA and VA loans, Jumbo loans, Reverse Mortgages and the Shared Appreciation Mortgage.

Rates and terms may vary. For more information about the Shared Appreciation Mortgage (SAM), please call 800/520-0057, contact a local Allied branch near you or visit the company's Web site at www.mortgageasap.com.