What is an Option ARM loan program?
This loan program is an adjustable rate mortgage with a low initial monthly payment that will increase each year for the first five years. It also offers other payment options to help you budget your monthly cash flow. • Minimum Monthly Payment • Interest Only Payment • 30-year Amortized Payment • 40-year Amortized Payment • 15-year Amortized Payment Its low introductory start-rate allows you to make very low initial mortgage payments and low qualifying rates enable you to qualify for more home. Calculating the monthly payment: The payment during the first five years starts by calculating the payment using the initial low introductory rate, usually 1 percent to 2 percent. That will be your payment rate. Each year the payment will increase 7.5 percent for the first five years.
