Option ARM Refinance and Negative Amortization Loan Program On HOLD

Option ARM refinance mortgages provide consumers with reduced payments with low rate payment options for negative amortization or interest only for an introductory period. Nationwide was an experienced lender from Southern California who provides “pick a payment loans”, mortgage refinancing, jumbo mortgages, negative amortization loans and interest only refinancing with 30 and 40-year fixed or adjustable rate loans for all types of credit. If you want more to increase your cash flow with the lowest possible payment, then talk to your loan officer about the option ARM mortgage that gives you more choices every month. Select the home loan that works for you: Refinance Your 1st and 2nd Mortgage together for one low payment with no mortgage insurance. However, these option ARM loans are not for everyone because if not monitored closely the monthly payments could be become unaffordable for many borrowers.

Take advantage of today’s low rates, and consider the option arm that starts at (see lender). This helps your cash flow, while still allowing you to pay down the principal.

Option Arm Refinancing

We offer the popular ARM loan with a (see lender) start rate where the customer picks from 5 payment options each month, and the minimum payment adjusts by a maximum of 7.5% annually. These are lowest interest rates you can find. The Option Arm has quickly become the most popular mortgage loan in California . This loan puts the borrower in the driver seat for mortgage payment options. Homeowners can choose from 3 payment options each month. Mortgage Rates starting at (see lender) Click Here to find out more.

Tempting ‘Pick-a-Payment’ Mortgages Carry Risks

Some lenders are promoting negative amortization mortgages as “Option ARMs” or “pick-a-payment” loans, and that could spell trouble for consumers down the road.

While borrowers may be lured by teaser rates and the flexibility of multiple payment options, some experts are urging consumers to steer clear of such products. They have been deemed risky because their monthly payments move upward along with interest rates, and borrowers who pay only the minimum will watch their balances climb as well.

ING Direct Executive Vice President Jim Kelly acknowledges that such products are beneficial to borrowers with commission-based incomes, but he believes most homeowners lack the discipline to put any extra cash in their pockets toward paying down the loans. Source: USA Today (07/19/05); Block, Sandra

Fully Amortized Option: this is the conservative payment that reduces your principal loan amount, by paying the full amount due monthly.

Interest-Only Option: Flexible payment that allows you to pay only the interest due. Your monthly payments are lower with this option.

Minimum Payment Option: This is the bare minimum payment option, which helps you maximize your cash flow every month.

Anxiety, Foreclosures Up as ARM Rates Rise

(April 3, 2006) — As interest rates rise, thousands of Americans with adjustable rates mortgages are having trouble paying the mortgage.

Nearly 25 percent of mortgages – 10 million – carry adjustable interest rates, many of them with subpar credit ratings, according to the Mortgage Bankers Association.

Of the 7.7 million household that took out ARMS over the last two years to buy or refinance, up to 1 million could lose their homes through foreclosure over the next five years because they won’t be able to afford their mortgage payments and their homes will be worth less than they owe, according to First American Real Estate Solutions, a real estate data provider.

In West Virginia, Alabama, Michigan, Missouri and Tennessee, about one in five homeowners with high-interest, subprime ARMs was at least 30 days late at the end of last year, the Mortgage Bankers calculate.

Source: USA Today, Noelle Knox (04/03/2006)