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Cash Flow ARM

Cash Flow ARM products are flexible. I use the Cash Flow ARM on both my home and investment property. I am a mortgage broker specialized in the Cash Flow ARM with 37 lenders offering the Cash Flow ARM to ensure you get the best mortgage for your specific situation.

An issue for many is managing income and expenses, or "cash flow". Income varies and unplanned expenses come up. Our mortgage payment  is our largest expense, and the least flexible. The Cash Flow ARM gives you control over your mortgage payment. Choose one of four cash flow arm payment options based on your cash flow needs.

        Cash Flow ARM Minimum Payment    A payment is set for 12 or 60 months at a reduced rate. The cash flow arm 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 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 arm. For concerns over deferred interest, read about the small amount of appreciation required to offset it.

        Cash Flow Arm 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    Make a principal and interest payment based on either a 30 year or 15 year payment schedule. I have included a Cash Flow ARM statement as well.

The Cash Flow Arm 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 security of a fixed payment while still taking advantage of the low payment rates, there is a 5 year fixed payment option. You still have four payment options to select from to manage your cash flow. You also have the ability to increase the term of your loan from 30 to 40 years lowering your payment even further. LTVs are now available up to 100%!

The Minimum Payment Advantage    This example 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 available on the Cash Flow ARM again based on the 10 year average. Assumes that the Minimum Payment increases by the maximum 7.5% per year.

                    30 Fixed                    Minimum Payment                 Monthly Savings                    Annual Savings

Year 1        $2,855                                $1,287                                        $1,586                                    $18,816
Year 2        $2,855                                $1,384                                        $1,471                                    $17,652
Year 3        $2,855                                $1,488                                        $1,367                                    $16,404

                                            Savings over 3 years        $52,872
                                            Savings invested at 8%    $56,885

Cash Flow Arm.

Here is a useful Cash Flow ARM payment calculator

Read very important information about Cash Flow Arm Prepayment Penalties

Read more about Cash Flow Arm Closing Costs

In 2008, Short Sales are where most of the bargains in real estate are. Learn more about Short Sales

Learn more about Loan Modification. If you can not refinance, it may be the best way to save your home today.

If you have had credit issues in the past, it is absolutely critical in today's market that they be addressed before you try to get a mortgage. I have referred my clients to CreditFX for the past 5 years. Exceptional customer service and I am often stunned at what they have been able to have removed from people's reports, allowing my clients to qualify. Their charge of $199 is one of life's true bargains.

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.