|
Welcome
|
100% LTV Option Arm100% LTV Option Arms are now available from 2 of our lenders. These loans require full documentation and are for primary residences only. You will also need excellent credit with scores above 650 to qualify. The maximum loan amount is $500,000. Stated income and non owner occupied are certainly available but with lower loan to values. At 100% LTV, there are two options available to you and I will be happy to provide some side by side comparisons as each situation can be different. One lender wll permit 100% financing with one loan. In this situation, the lender will use what is described as "lender paid mortgage insurance". In other words, the mortgage insurance is included in your start rate and margin. The advantage to this approach is that the entire payment will be tax deductible (mortgage insurance is not) For example, lets assume we are looking at a $300,000 home and you want a 40 year term: 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 spend some time with the option arm section so you have a clear picture of what an option arm is. I have developed an Adobe document that goes into detail on how this new program works. Send me a quick email requesting a copy of "Understanding the Option Arm". I will send it by return email. Here is a useful 100% LTV Option Arm payment calculator Read very important information about 100% LTV Option Arm Prepayment Penalties Read more about 100% LTV Option Arm Closing Costs I have an article "Buying your home in 2008" by email explaining negotiating strategy in today's market. 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.
|
|
Prequalify
for your 