Option Arm - Negative Amortization

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Providing you with greater flexibility in managing your monthly mortgage payment.

Effectively managing monthly income and expenses, commonly referred to as your "cash flow," is an ongoing challenge for many homeowners. Income may vary on a monthly basis and unplanned expenses may arise. In response to this need, we provide option ARM/Negative Amortization mortgage's to provide you with greater flexibility in managing your monthly mortgage payment. Don't let the word "negative" fool you, this is a great mortgage program!

For many of us, our mortgage payment is our largest monthly expense. It is also the least flexible. If life were as predictable as our mortgage payment, this would be fine. Unfortunately, in the real world, income fluctuations and unplanned expenses can wreak havoc on monthly cash flow.

The Option ARM Loan was specifically designed to give you greater control and more flexibility over your mortgage payment. You have the option of choosing one of four payment options each month based on your specific cash flow needs at the time.

1. Minimum Payment - a "start rate" that is available for 5 years. This option not only maximizes cash flow, giving you more cash each month for other expenses, but may also defer payment of interest on your mortgage loan, potentially allowing you greater flexibility in managing your tax deductions.2 Plus, this payment will not increase by more than 7.5% each year, except when your loan is recast every five yrs or your principal balance exceeds 110% of your initial loan balance.

2. Interest-Only Payment - Defer paying principal on your loan and improve your monthly cash flow. The money you normally use for the principal portion of your mortgage payment can instead be used for other purposes, such as paying off high cost credit obligations or investing. (This option is not available if the payment would be less than the minimum payment. In this situation, no interest is deferred when you make the minimum payment.)