Cash flow ARM

With this Adjustable Rate Mortgage, you have up to four different Mortgage Payment Options every month. You choose your payment type based on your cash-flow needs and your financial goals. Your Monthly Payment Options include the Minimum Payment, the Interest-only Payment; the Fully Amortized Payment; and the 15-year payment.

Cash Flow ARM products are available with Several Mortgage Lenders. An issue for many homeowners is managing monthly income and expenses, or "cash flow". Income varies monthly for many reasons and unplanned expenses come up when least expected. For many, our Mortgage Payment is our largest monthly expense, and the least flexible. The Cash Flow ARM was designed to give you greater control over your Mortgage Payment. You can choose one of Four Payment Options each month based on your Cash Flow needs.

Minimum Payment: A payment that is set for 12 or 60 months at a Reduced Rate of Interest. The Minimum Payment Rate for the 12 month option is currently 1.00% and the 60 month option is 1.90%. This Mortgage Payment option maximizes cash flow and may also defer payment of interest allowing greater flexibility in managing your tax deductions. This Minimum Payment can not increase by more than 7.5% each year.

Interest Only Payment: Defer paying principal and Improve Cash Flow. This option is not available if the interest only payment would be less than the minimum payment.

Fully Amortizing Payment Options: You can make a principal and interest payment based on either a 30 year or 15 year payment schedule.

Additional Options: If you want the additional security of a fixed payment while still taking Advantage of the Low Payment Rates, there is a 5 year fixed payment option. You have a fixed minimum payment for five years. You still have four payment options to select from to manage your cash flow. You also have the ability to increase the term of your loan from 30 to 40 years lowering your payment even further. LTVs on Cash Flow Arms are now available up to 100%!

The Minimum Payment Advantage The example below is based on a $400,000 mortgage. It compares a traditional 30 year fixed rate payment based on the above 10 year average to the minimum payment available on the Cash Flow ARM again based on the 10 year average. Assumes that the Minimum Payment increases by the maximum 7.5% per year.