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1% Mortgage Option Plan1% Mortgage Option Plan products are flexible. 1% Mortgage Option Plan products are used on my home and investment properties. Email requesting a copy of "Understanding the 1% Mortgage Option Plan" an Adobe document detailing how the 1% mortgage option plan program works. An issue for many is managing monthly income and expenses. Income varies and unplanned expenses come up. Our mortgage payment is our largest expense, and the least flexible. 1% mortgage option arm plan products are designed to give you control over your mortgage payment. Choose one of four 1% mortgage option plan payment options each month based on your cash flow. Minimum Payment A 1% mortgage option plan minimum payment is set for 12 or 60 months at a reduced rate. The 1% mortgage option plan minimum payment rate for the 12 month option is 1% and the 60 month option is at 1.90%. This 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. Read about the important tax considerations of a 1% mortgage option plan. If you have concerns over deferred interest, read about the small amount of appreciation required to offset it. Interest Only Payment Defer paying principal and improve cash flow. This option is not available if the interest only payment is less than the minimum payment. Fully Amortizing Payment Options You may make a principal and interest payment based on either a 30 year or 15 year payment schedule. I have included a 1% Mortgage Option Plan statement as well. The 1% mortgage Option Plan allows you to choose your index from the 1 month LIBOR or the MTA. Here is a 10 year comparison between a 30 year fixed and fully indexed LIBOR, MTA, COFI, and the 1 year Treasury Index in chart form. Additional Options If you want the security of a fixed payment while taking advantage of the extremely low 1% Mortgage Option Plan payment rate, there is a 5 year fixed payment option. With the 5 year Fixed Payment, you have a fixed minimum payment for the first five years. You have the four payment options to select from to manage cash flow. And, you also have the ability to increase the term of your loan from 30 to 40 years lowering your payment even further. LTVs on the 1% Mortgage Option Plan are 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 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 the Minimum Payment increases by the maximum 7.5% per year. 30 Fixed Minimum Monthly Savings Annual Savings Year 1 $2,855
$1,287
$1,586
$18,816
Savings over 3 years $52,872 I have added a website dedicated solely to the 1% Mortgage Option Plan. Here is a useful 1% Mortgage Option Plan payment calculator Read very important information about 1% Mortgage Option Plan Prepayment Penalties Read more about 1% Mortgage Option Plan Closing Costs Learn more about the current Credit Crisis and how it affects you. From the CMPS Institute. As a Certified Mortgage Planning Specialist, I offer an analysis of your situation today can make suggestions on how small changes in how your debt is structured today can have a life changing effect in the years to come. Read more about this free, no obligation service. New! View my Wealthbuilder presentation and learn the safe way to manage your debt and fund your retirement.
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