What is a Texas Payment Option ARM loan program?
This loan program is an adjustable rate mortgage with a repayment schedule that is usually based on a 30 year repayment schedule. The finance rate usually starts at a low rate and increases or changes on a predetirmined schedule. It also offers payment options to help you budget your monthly cash flow. With an option ARM you have a choice for each payment. Generally you may choose to pay only interest (and possibly less than that), interest plus a small principal ammount, or interest plus a larger principal ammount. Listed below are some examples of ARM payment choices: • Minimum Monthly Payment • Interest Only Payment • 30-year Amortized Payment • 40-year Amortized Payment • 15-year Amortized Payment Oneadvantage of the option ARM is that its low introductory start-rate allows you to make very low initial mortgage payments, and low qualifying rates enable you to qualify for a larger home loan. A disadvantage of the ARM mortgage is that the payment could increase in future years. For t
