Morgan Stanley Home Loans

Fixed-Rate Loans

Loan Product	Loan Size	Monthly Payment	Number of Payments
30-Year Fixed	$100,000	$640.31	360
	$500,000	$5,191.22	360
	$1,500,000	$15,863.51	360
	$2,500,000	$25,475.02	360
15-Year Fixed	$100,000	$843.86	180
	$500,000	$5,840.95	180
	$1,500,000	$17,761.97	180
	$2,500,000	$28,808.62	180

Fixed-to-Adjustable Rate Loans¹

Loan Product	Loan Size	Monthly Payment	Number of Payments
3 Year	$417,000	$2,389.06	36
		$1,998.13	84
		$2,927.69	240
5 Year	$417,000	$2,302.19	60
		$1,998.13	60
		$2,927.69	240
7 Year	$417,000	$2,432.50	84
		$1,998.13	36
		$2,927.69	240
10 Year	$417,000	$2,389.06	120
		$2,927.69	240

¹The above examples are typical payment terms for adjustable rate loans. The loan term is 30 years, with fixed-rate interest-only payments due for the initial 3, 5, 7 or 10 years. Once the initial fixed-rate interest-only period has passed, the adjustable-rate interest-only payment period commences for the remainder of the 3, 5 or 7 year portion. Payments during the final 20 years for each product will be principal and interest, with an adjustable interest rate.

Product	Fixed-Rate Interest-Only Period	Adjustable-Rate Interest-Only Period	Principal & Interest (adjustable rate) Period
3-Year IO	Years 1 thru 3	Years 4 thru 10	Years 11 thru 30
5-Year IO	Years 1 thru 5	Years 6 thru 10	Years 11 thru 30
7-Year IO	Years 1 thru 7	Years 8 thru 10	Years 11 thru 30
10-Year IO	Years 1 thru 10	NA	Years 11 thru 30

Payments during the adjustable-rate interest-only and the principal/adjustable-rate interest periods are based on the 1-year LIBOR index as of Thursday, August 28, 2008, 3.220%, plus a 2.50% margin. All rates are rounded to the nearest 0.125%. The interest rate and APR on these adjustable rate loans may increase during the adjustable rate periods, but the payments shown above assume that it does not change during the life of the loan.