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option arms - how to keep your rates as low as possible |
| This
loan program is an adjustable rate mortgage with added flexibility
of making one of several possible payments on your mortgage every
month, in order to better manage your monthly cash flow.
It's low introductory start rate allows you to make very low
initial mortgage payments and low qualifying rates enable you to
qualify for more home.
The minimum payment option can help keep your monthly payments
affordable. If the minimum monthly payment is not sufficient to
pay the monthly interest due, you can always avoid deferred
interest by choosing the interest-only payment option.
With the Option ARM, you generally have at least two fully
amortized payment choices, leading to a quicker loan payoff. If
you prefer to pay off your loan on schedule, you can make the
fully amortized payment based on a 30-year loan, or you can choose
the 15-year payment option for the fastest equity build-up.
In most cases, you can also make additional principal payments
which reduce the amount you need to pay in later months.
Option ARM loan programs are right for you if you'd like to own
your property only for a short time, and prefer affordability and
flexibility in your monthly payment. However, if you select the
minimum payment option in the early years, you should be prepared
for a possible sudden increase (often referred to as payment
shock) in your monthly payments thereafter.
(continued) |
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call now to get the
lowest loan rates available!
we have
great rates for:
recent purchase - need cash out
re-finance - even if your property was listed as recently as
yesterday
we specialize in
option arm loans -
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get started -
apply on-line -
now!
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choosing a loan program - which one is
right for you? |
There isn't a single or simple answer to this
question. The right type of mortgage for you depends on many
different factors:
- Your current financial picture
- How you expect your finances to change
- How long you intend to keep your house
- How comfortable you are with your mortgage payment changing
For example, a 15-year fixed rate mortgage can save you many
thousands of dollars in interest payments over the life of the
loan, but your monthly payments will be higher. An adjustable rate
mortgage may get
you started with a lower monthly payment than a
fixed rate mortgage, but your payments could get higher when the
interest rate changes.
The best way to find the "right" answer is to discuss your
finances, your plans and financial prospects, and your preferences
frankly with a mortgage professional, please call us at
888-777-7932 or email
us.
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click here for other mortgage tools and information including:
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Option ARM loans have four major types of payment options:
- Minimum Payment
With the minimum payment option,
your monthly payment is set for 12 months at your initial
interest rate. After that, the payment changes annually, and a
payment cap limits how much it can increase or decrease each
year.
If you make the minimum payment after the end of your initial
interest rate period, which usually holds only for the first 1
to 3 months, it may not be enough to pay all of the interest
charged on your loan for the previous month and the unpaid
interest will be added to the principal balance you owe (will
be deferred).
- Interest-Only Payment
With the interest-only payment
option, you can avoid deferred interest, when the minimum
payment is not enough to pay the monthly interest due. The
interest-only payment option, however, is not available if the
interest-only payment would be less than the minimum payment.
Please note, that this payment option does not result in your
principal reduction.
The interest-only payment may change every month based on
changes in the ARM index used to determine your fully indexed
rate.
- Fully Amortizing 30-Year Payment
With fully amortizing payments, you
pay both principal and interest and keep your loan on
schedule. Your payment is calculated each month based on the
prior month's fully indexed rate, loan balance and remaining
loan term.
- Fully Amortizing 15-Year Payment
If you prefer to put your loan on an
accelerated schedule and can afford higher monthly payments,
the 15-year payment option allows you to repay your loan twice
as faster and save more than half the total interest costs of
a 30-year loan.
Please note, that this payment option is offered only on the
30-year (or 40-year) term. It will cease to be an option when
the loan has been paid to its 16th year.
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Clarion Mortgage
10474 Santa Monica Boulevard, Suite 302
Los Angeles, California 90025
888.363.3423 email: bstuart@clarionmortgage.com |
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