Yes the newest thing in mortgages is known by many names such as option arm, 12 mat, pick-a-pay, and finally the mighty MTA! No matter what name is use they all have the same results in allowing you to make you mortgage payments each month in the 4 different payment options. First, at a low interest start rate, interest only, 15, 30 and even 40 year amortization.
Did you ever want to have a really low interest rate? Well here it is! Start rate on some option mortgages could be as low as 2.5% while others could get even as low as 1 % with these low rates your monthly payments will be really, really low. A higher cash flow each month is one of the benefit of choosing this payment. However negative amortization does accrue each month. Meaning that you might owe more on your loan than when you first started if you only make use this payment option. But rest assure the lender will not allow you to go over 110% of the original loan amount. Most experts don't recommend making these payments all the time but only in times of needs. Disciplined borrowers and investors will surely learn how to free up their cash flow by using this option.
Interest only payment is second on our list with no negative results and still comfortable payments each month, but with no lowering of principle unless separately made by the borrower.
Your next payment options that you can take advantage of are the 15, 30 or even 40 year principle and interest payments. Building equity is much easier and quicker depending on which one you use.
All four payment options are available to borrowers on their statement each month.
Flexibility, low easy payments and quick equity building are some of the great benefits that smart investors and home owners are receiving each month with the option arm mortgage programs.
The pick-a-pay is available for new purchases refinances. More information is available upon request from your loan specialist just send me an email: manny@actionfinancialteam.com or log onto www.actionfinancialteam.com for further research.
