Because the interest rate adjusts every six months, payments may rise or fall over the loan term.
Insurance is extra.
If the Clinton's default on the mortgage, Bankers Trust may then use the money held in reserve to make up for any losses from a foreclosure. Neither choice is especially attractive, but the Clinton approach is arguably better than an outright loan or gift from supporters or lobbyists. The reality is that a sitting President today cannot retire to a suburban tract home given reasonable needs for privacy and security. Perhaps the best approach would be to include a home purchase allowance in presidential retirement packages, along with such current benefits as a pension, lifetime security, and office funding. As to Mr. McAuliffe's money, don't worry.