Option Arm Continued….

Option ARM (Adjustable Rate Mortgage) puts you in control of your financial destiny. Instead of locking you into a monthly mortgage amount that never changes, the Option ARM Loan offers you the choice of four monthly payment choices. With our Option ARM Loan you can choose how to manage your money each month as you see fit.

The Option ARM is perfect if you would like to:

  • Invest extra money in interest-bearing vehicles,
  • Have flexibility with your income as a self-employer, commissioned employee, or a small business owner,
  • Pay off your credit cards,
  • Have extra money during the month to deal with emergencies or large expenditures,
  • Prepare for your kids college fund,
  • Have easy management of your monthly cash flow.

Other Option ARM Loan Benefits
  • A low introductory rate
  • A low qualifying rate that enables you to qualify for more home.
  • The amount is based on the 12-month Moving Treasury Average Index - a stable interest rate index - that will help you reduce your interest rate and swings in payments.
  • Payment cap of 7.5% per year limits how much your payment will change (payment cap based on monthly mortgage payment). In most cases, the adjustment will cost you less than the traditional ARM.
  • No pre-payment penalty.
  • Low margins compared to standard treasury programs.

Sample of Monthly Statement Options
  •      Option #1 Minimum Payment
Gives you more money to work with each month. First year's minimum payment based on the initial start rate. The minimum payment for the year will be established annually. At each subsequent annual adjustment, the minimum payment is based on the 11-month prior Moving Treasury Average Index plus margin. Payments limited to a 7.50% adjustment annually.