Payment Option ARM Purchase

Payment option ARM purchase loans remain popular with 1st time homebuyers seeking a low payment. Nationwide Mortgage Loans offers a few different payment option arms, including a purchase option that includes a start rate of (see lender). The payment option arm allows you to select a payment option each month. The negative amortization option is available because the interest is deferred and added to the principal amount owed on the home. In a market with rising equity, these pay option loans make sense, because borrowers often earn equity faster than the interest is deferred.

Increase Your Home Purchase Power with the Low Payment Option ARM

  • Principal & Interest (Fully Amortized Payment )
  • Interest Only Option
  • Negative Amortization Option
  • Option ARM MTA
  • Option ARM COFI

These payment option purchase loans are a very unique loan programs, because it give you the ability to select the payment type each month.  Negative amortizations are controversial, because the low payment option adds up to an increased mortgage balance at the end of the year.  It all comes down to..Will your home gain more equity than it looses with the negative amortization.

$500,000 Home Purchase -    80-10 Payment Example:

*$400,000 First Mortgage at (see lender) Intro
60 Monthly Payments at $ 1,333.01

$ 40,000 30 Year Fixed Second Mortgage at 9%
360 Monthly Payments at $ 321.85

Finance Tips and Loan Advice

Benefits:
Lower intro rate
Low payments can increase home-buying power
7% Cap of payment increases for first 5 years

Concerns:
Loss of Equity with negative amortization
Limited second mortgage options for future refinancing
Difficulty selling your home if mortgage increases beyond value

  • Cash Out Refinance
  • Stated Income Second Mortgages
  • Debt Consolidation of High Rate Credit Cards
  • Low Rate Home Equity Loans

*(see lender) for $400,000 is an Intro rate of First Mortgage that may cause negative amortization resulting in loss of home equity.

Don't wait any longer, Call 1-877-212-9478 to speak with a seasoned loan professional live. We offer a helpful consultation that includes a free loan quotes with no obligation.


 

Resource Tools

ARM vs. Fixed Rate Calculator
How does a fixed rate 1st or 2nd mortgage compare to an adjustable rate mortgage or home equity line of credit?

 

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