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Cash Flow Adjustable Rate MortgageCash Flow Adjustable Rate Mortgage products are available from several lenders. I have converted my home and investment property mortgages to the Cash Flow Adjustable Rate Mortgage. I am a mortgage broker specialized in the Cash Flow Adjustable Rate Mortgage with 37 lenders offering the Cash Flow Adjustable Rate Mortgage to ensure you get the best mortgage for your specific situation An issue for many homeowners is managing income and expenses, or "cash flow". Income varies and uplanned expenses come up. For many, our mortgage payment is our largest expense, and also the least flexible. The Cash Flow Adjustable Rate Mortgage was designed to give you control over your mortgage payment. You have the option of choosing one of four payment options each month based on your cash flow needs. Minimum Payment A payment is set for 12 or 60 months at a reduced rate. The minimum payment rate for the 12 month option is currently 1.00% and the 60 month option is 1.90%. This 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 cash flow adjustable rate mortgage. 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 would be less than the minimum payment. Fully Amortizing Payment Options You can make a principal and interest payment based on a 30 year or 15 year payment schedule. I have included a Cash Flow Adjustable Rate Mortgage statement as well. The Cash Flow Arm series allows you to choose your index from the 1 month LIBOR (London Interbank Offered Rate) or the MTA (12 Month Treasury Average). 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. Additional Options If you want the additional security of a fixed payment while still taking advantage of the low payment rates, there is a 5 year fixed payment option. With the Cash Flow ARM 5 year Fixed Payment, you have a fixed minimum payment for five years. You have the four payment options to select from monthly to manage your cash flow. You also can increase the term of your loan from 30 to 40 years lowering your payment further. LTVs 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 payment based on the above 10 year average to the minimum payment based on the 10 year average. Assumes that the Minimum Payment increases by the maximum 7.5% per year. 30 Fixed Cash Flow Minimum Monthly Savings Annual Savings Year 1
$2,855
$1,287
$1,586
$18,816
Savings over 3 years $52,872 I have developed an Adobe document detailing how this program works. Send me an email requesting a copy of "Understanding the Cash Flow Interest only mortgage. I will send it by return email I have added a website dedicated solely to the Cash Flow Adjustable Rate Mortgage. Here is a useful Cash Flow Adjustable Rate Mortgage payment calculator Read very important information about Cash Flow Adjustable Rate Mortgage Prepayment Penalties Read more about Cash Flow Adjustable Rate Mortgage 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 financing 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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