Option Arm Loan Benefits | Option Arm Fixed Loan | Mortgage Calculator

Option Arm Loan:

An Option Arm Loan is a loan with an extremely low “fixed minimum payment” option each month. The “fixed minimum payment” option is actually lower than the actual interest that accrues on the loan each month (interest only payment). If the “fixed minimum payment” is made monthly, the additional interest not covered by the “fixed minimum payment’ is added back onto the principal balance of the loan.

Why an Option Arm Loan:

1. Buyers who are interested in purchasing a larger, more expensive home while at the same time wish to keep the new mortgage payment low for the first few critical years!
2. Real Estate Investors: The flexible payment options help control the cash flow of the property especially during those critical months when a property may have a vacancy, need expensive repairs, etc.
3. Self-Employed Individuals: The flexible pay options let you control your personal monthly cash flow by giving you four different payment options each month on your mortgage.  This is a highly useful money management tool for Self-Employed Individuals and their varying income each month.
4. Real Estate Speculators (“Flippers”): Utilize the payment flexibility to maximize cash flow and leverage investment properties. The minimum payment option (especially when amortized over 40 years) allows you the power to control 2x to 3x real estate as compared to a traditional fixed rate mortgage.
5. Other Investments: many people utilize an Option Arm Loan to create additional cash to purchase other traditional investments such as: stocks, bonds, college investments, etc.

Payment Comparison to a Traditional 30 Year Fixed Rate Loan:

$500,000 Loan Amount:
Traditional 30 Year Loan: 30 Years @ 6.5% for $500,000 = $3160.34 per month
Option Arm Loan: 30 year minimum pay rate @ 2.95% for $500,000 = $2094.56 per month
… The OPTION ARM LOAN saves you over $1065 per month!!!

$250,000 Loan Amount:
Traditional 30 Year Loan: 30 Years @ 6.5% for $250,000 = $1580.17 per month
Option Arm Loan: 30 year minimum pay rate @ 2.95% for $250,000 = $1047.80 per month
… The OPTION ARM LOAN saves you over $532 per month!!!

Other Interesting Facts on Option Arm Loans:

MINIMUM START RATES AS LOW AS 2.95%
There are many different start rates and payment options available depending on your specific needs. We recommend you contact one of our experienced Loan Consultants to customize a program which best fits your individual needs.

NO CLOSING COST LOANS AVAILABLE
Depending on the state you are located in and the loan amount you are acquiring, you may be able to get the lender to pick up all the closing costs (no points, and/ or 3rd party closing fees)! Again, we recommend asking your loan consultant about this option if available.

FIXED RATE PROGRAMS AVAILABLE
Fixed start rate programs and fixed margin & index programs available. Great low rates still available!

MANY INCOME DOCUMENTATION LOAN TYPES AVAILABLE:
We can custom tailor your loan to best fit your income documentation requirements. We offer “Full Documentation” (full income/ full assets), "Stated Income/ Verified Assets", "Stated Income/ Stated Assets (currently not available)", "No Income/ No  Assets" (currently not available) , and “No Documentation” (currently not available) to our clients.

PERFECT CREDIT “NOT” REQUIRED
It is true that the Option Arm Loan programs are an “A” paper portfolio product; however there are many situations where less than perfect credit can be successfully qualified for a loan as well. Don't assume you don't qualify; contact one of our mortgage professionals to do an analysis of your individual situation

FLEXIBLE MONTHLY PAYMENT OPTIONS
With a Option Arm Loan you get the choice each month of 3 payment options. This is why a Option Arm Loan is also called a "Flexible Payment Loan" and a "Pick-A-Payment Loan". You have the flexibility of choosing which type of payment to make every month. You can choose the minimum start rate payment, the interest only payment or the full principle and interest payment depending on your monthly cash flow. The choice is always up to you.