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The Smart Loan ? Option ARM
The loan that gives you the benefit of having a 30 year fixed rate and gives you the option to make the smallest possible payment or full interest only and can even give you the opportunity to pay off the loan completely in 15 years. The win-win situation loan.
The Option ARM is beneficial to those borrowers who;
1.Are self employed or whose income is commission based. Adjust the monthly payment according to your monthly earnings.
2.When borrowers have consumer debt, lower mortgage payments allow you the time to pay off higher interest rate debt. Remember, credit card interest, and car payment interest is not tax deductible, however, mortgage interest is.
3.Home buyers who want a larger home can spend more on a purchase price. The low start rate and interest only options give buyers more home purchasing power.
4.There are even some lenders who are amortizing the option arm over a 40 year period to keep the principal and interest payments lower.
Heres how it works:
With the smart loan you have a choice of payments each and every month!
Each option has unique advantages and you select the best one for your needs.
1.Minimum Payment: The lowest payment option. Frees up extra money and keeps monthly payments low.
2.Interest Only: Low payment option, keeps your monthly payment manageable while paying all accrued interest.
3.30 year fully amortizing payment: Traditional loan payment designed to pay off both principal and interest in 30 years.
4.Many lenders offer: 15 year fully amortizing payment: Provides faster equity build up and substantial savings on interest. This loan is designed to payoff both principal and interest in 15 years.
The minimum payment can be fixed anywhere from one month to 10 years.
There are several considerations to make when deciding on the best use of the Option ARM.
1.How long do you intend to stay in the house?
2.What is your financial situation at this time?
3.Do you need extra cash on a monthly basis?
4.Do you have unexpected medical bills?
The list goes on and on, depending on your own personal goals.
This is the ?Smart Loan? because it gives you, the homeowner, the choice each and every month to pay what works for you.
Everyone has challenges in their lives and its great to be provided with choices.
There has been a lot of talk lately about those of you who have a typical adjustable rate mortgage. You have had the loan for the last 2 or 3 years and its coming upon the time to either go with the adjustment or refinance. The advertising says go with the 30 year fixed rate loan.
In the case of the option ARM, you can have that 30 year loan if you want to pay that, because the loan gives you that choice. Many lenders are offering fully indexed rates for the entire 30 years, so there will be no surprises.
However, what if, God forbid, something happens in the future and you need to make a smaller monthly payment for a time, the choice is yours.
Here is another suggestion, what if you get a bonus from work or you come into some extra cash, you have the right to pay on the principal of the loan at any time. (Some restrictions may apply).
This is also a great loan program for first time home buyers. The Smart Loan is easy to qualify for and can be a combined 100% total financing.
Patti Schopper has been in the real estate industry over 36 years. Her goal has always been to put the needs and wants of her clients first. Contact Patti today atwww.realestateandloans4you.com She will be happy to give you all the details about the option ARM and other loan types that will fit your situation.
The loan that gives you the benefit of having a 30 year fixed rate and gives you the option to make the smallest possible payment or full interest only and can even give you the opportunity to pay off the loan completely in 15 years. The win-win situation loan.
The Option ARM is beneficial to those borrowers who;
1.Are self employed or whose income is commission based. Adjust the monthly payment according to your monthly earnings.
2.When borrowers have consumer debt, lower mortgage payments allow you the time to pay off higher interest rate debt. Remember, credit card interest, and car payment interest is not tax deductible, however, mortgage interest is.
3.Home buyers who want a larger home can spend more on a purchase price. The low start rate and interest only options give buyers more home purchasing power.
4.There are even some lenders who are amortizing the option arm over a 40 year period to keep the principal and interest payments lower.
Heres how it works:
With the smart loan you have a choice of payments each and every month!
Each option has unique advantages and you select the best one for your needs.
1.Minimum Payment: The lowest payment option. Frees up extra money and keeps monthly payments low.
2.Interest Only: Low payment option, keeps your monthly payment manageable while paying all accrued interest.
3.30 year fully amortizing payment: Traditional loan payment designed to pay off both principal and interest in 30 years.
4.Many lenders offer: 15 year fully amortizing payment: Provides faster equity build up and substantial savings on interest. This loan is designed to payoff both principal and interest in 15 years.
The minimum payment can be fixed anywhere from one month to 10 years.
There are several considerations to make when deciding on the best use of the Option ARM.
1.How long do you intend to stay in the house?
2.What is your financial situation at this time?
3.Do you need extra cash on a monthly basis?
4.Do you have unexpected medical bills?
The list goes on and on, depending on your own personal goals.
This is the ?Smart Loan? because it gives you, the homeowner, the choice each and every month to pay what works for you.
Everyone has challenges in their lives and its great to be provided with choices.
There has been a lot of talk lately about those of you who have a typical adjustable rate mortgage. You have had the loan for the last 2 or 3 years and its coming upon the time to either go with the adjustment or refinance. The advertising says go with the 30 year fixed rate loan.
In the case of the option ARM, you can have that 30 year loan if you want to pay that, because the loan gives you that choice. Many lenders are offering fully indexed rates for the entire 30 years, so there will be no surprises.
However, what if, God forbid, something happens in the future and you need to make a smaller monthly payment for a time, the choice is yours.
Here is another suggestion, what if you get a bonus from work or you come into some extra cash, you have the right to pay on the principal of the loan at any time. (Some restrictions may apply).
This is also a great loan program for first time home buyers. The Smart Loan is easy to qualify for and can be a combined 100% total financing.
Patti Schopper has been in the real estate industry over 36 years. Her goal has always been to put the needs and wants of her clients first. Contact Patti today atwww.realestateandloans4you.com She will be happy to give you all the details about the option ARM and other loan types that will fit your situation.
