This type of loan
program is for those who would like to significantly lower their mortgage
payments by allowing you to pay only the interest on the loan. This type of loan is great for debt consolidation or buying a home with the intent of selling it in a few years to take advantage of the appreciation.
Example of how you may benefit from an Interest Only Loan Program
...Before Refinancing:
Mortgage Balance: $225,000
Rate: 7.5%
Term: 30 Year
Monthly Mortgage Payment: $1,573.23
...After Refinancing:
New Loan: $225,000
New Rate: 3.75%
New Payment: $703.13
Old Payment: $1,573.23
Monthly Payment Savings: $870.10
Yearly Savings: $10,441.20
3-Year Savings: $31,323.60
5-Year Savings: $52,206
* Payments based on 30 Year Amortization, 80% ltv, 1st lien position, 3.75% rate, 3.85% APR.
APR may vary depending on term and amount.
Rates are subject to change.
Loan application subject to credit and underwriting guide lines
Home Equity Line (HELOC)
This type of program is very popular for those looking to do home improvements and who are not interested in tapping into all of their home's equity at one time. With this type of program you can draw on your equity at your leisure making this an excellent loan program that you control. A "HELOC" is usually setup on an interest only payment and is fixed to either the LIBOR or Prime index and can be used for at least 10 years before principal payments are required.
Example of How and
Interest Only HELOC Payment is Calculated:
Rate + Index x Remaining HELOC Balance/divided by 12 Months = Mo. Payment
4.25 + 1.00 x 35,000 /12 Mo. = $125.00
Short Term
Interest Only ARM's
The Interest Only option is available on all
of my ARM's with the Interest Only period being for 1, 3, 5, or 10 years. After
the Interest Only term is expired, the loan amortizes at the number of remaining
years on the loan term. For example, a 5/1 ARM with an Interest Only period of 5
Years will become a 25 Year ARM, amortized over 25 years.
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