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100% CLTV Option Arms100% CLTV Option Arms are now available from 2 of our lenders. For 100% CLTV Option Arms financing, you will also need excellent credit with scores above 680 to qualify. The maximum 100% CLTV Option Arms loan amount is $500,000. Stated income and non owner occupied are certainly available but with lower loan to values. These 100% CLTV Option Arms require full documentation and are for primary residences only. At 100% CLTV, there are two option arms available to you and I will be happy to provde some side by side comparisons as each situation can be different. One lender will permit 100% CLTV option arms with one loan. In this situation, the lender will use "lender paid mortgage insurance". In other words, the mortgage insurance is included in your start rate and margin. The advantage to this 100% CLTV option arms approach is that the entire payment will be tax deductible. For example, lets assume we are looking at a $300,000 home and you want a 40 year term option: At 80% loan to value the start rate is 1% and your margin is 2.88, your
minimum payment will be $758.57 Please note that your margin may be different as credit quality and other factors can affect the margin. As you can clearly see, there is an increase in the payment but if you want to do 100% financing, this may be a good option for you. The other approach available through both is an 80/20 combination financing approach. In this case, your option arm is set at 80% of the sales price and we also do with the same lender a HELOC for the 20%. No need for mortgage insurance and an advantage to this approach is that you will be able to pay off the second loan at some point leaving you with only the payments on the first.. What can be an issue in some credit situations is that the payment on the second loan can be rather high making the combined payments higher than with the single loan approach above. Again, the reason I like to do the side by side comparison above. If you have reached this page directly from a search engine, please read the option arm section so you have a clear picture of what they are I have developed an Adobe document that goes into detail on how this new program works. Send me a email requesting a copy of "Understanding the Option Arm". I will send it by return email. Here is a useful 100% CLTV Option Arm payment calculator Read more about 100% CLTV Option Arm Closing Costs As a Certified Mortgage Planning Specialist, I offer an analysis of your situation today can make suggestions on how small changes in how your consumer and mortgage 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. I hope the information on this page was useful to you. Please scroll down to view my Mortgage Market Guide. It is a weekly publication explaining the financial markets from a consumer's perspective that is available on this website or by email subscription. I have nearly 8,000 subscribers today and would be happy to have you as well. Your email address will never be used for any other purpose.
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