Select Rates

Option Adjustable Rate Mortgages allows you to have four different payment options each month. With an Option ARM you have payment options each month that allow for -minimum payment, interest only, full principal and interest, or 15-year payment option. Allowing you to choose the payment that best fits your needs at anytime. Your minimum payment on Option ARM loans may not fully cover the interest that accrues monthly. This is known as "deferred interest." If the minimum payment doesn't cover the entire interest owed, it gets tacked onto your loan balance which means you can get into trouble very quickly, if you don't know what you're doing. Your loan balance can actually increase as you make these low payments. You can elect to use the minimum payment as often as you like, but if used too often without making some larger payments in between, you could end up with a mortgage balance that is higher than the value of your home If you decide to make the 30-year amortization payment on your Option ARM, you're paying an amount equal to what is needed to pay off your loan in 30 years. If you decide to make the 15-year amortization payment, you're paying an amount that is needed to pay off your loan in 15 years Option ARMs are popular because they are usually offered with a very low initial interest rate (a so-called "teaser rate") and a low minimum payment, which permits borrowers to qualify for a much larger loan than would otherwise be possible.

Make a lower monthly payment and temporarily increase your cash flow so you can free up cash for:

Retirement investment
Paying down high-interest debt
Funding college tuition

Make higher payments and pay off your home loan sooner
Keep mortgage payments low during the initial years of your loan
Control your budget based on your individual financial needs

Option Arm