5 Year Option Arm
5 year option arm products are flexible. 5 year option arm products are my choice for my home and investment property.
5 year option arm helps manage income and expenses. 5 year option arm products give you control over your payment. Income varies and unplanned expenses come up. Our mortgage payment is our largest expense, and the least flexible. Choose one of four 5 year option arm payment options.
Request a copy of "Understanding the 5 Year Option Arm" by email. It is a document explaining how the 5 year option arm works.
5 Year Option Arm Minimum Payment A minimum payment is set for 60 months at a reduced rate. The minimum payment rate is 1.90%. This maximizes cash flow and may defer payment of interest allowing flexibility in managing tax deductions. Read about the important tax considerations of the product. For concerns over deferred interest, read about the small amount of appreciation required to offset it.
5 Year Option Arm Interest Only Payment Defer paying principal and improve cash flow.
Fully Amortizing Payment Options Make a principal and interest payment based on a 30 or 15 year payment schedule. I have included a 5 Year Option ARM statement.
Choose your index from either the 1 month LIBOR or the MTA.
Here is a 10 year average comparison between a 30 year fixed and fully indexed LIBOR, MTA, COFI, and the 1 year Treasury Index in chart form.
The Minimum Payment Advantage The example below is based on a $400,000 mortgage. It compares a 30 year fixed rate payment based on the 10 year average to the minimum payment. Assumes that the Minimum Payment increases by the maximum 7.5%.
30 Fixed Cash Flow Minimum Monthly Savings Annual Savings
Year 1-5 $2,855
Savings over 3 years $52,872
I have recently added a website dedicated solely to the product.
Here is a useful 5 Year Option Arm payment calculator
Read very important information about Prepayment Penalties
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.
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