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Cash Flow Option ARM

Cash Flow Option ARM products are available from several lenders. I have converted my home and investment property to the Cash Flow Option ARM. I am a mortgage broker specialized in the Cash Flow Option ARM with 37 lenders offering the Cash Flow option ARM to ensure you get the best mortgage for your specific situation  

An issue for many homeowners is in managing income and expenses, or "cash flow". Income varies and unplanned expenses come up. For many, our mortgage payment is our largest expense, and the least flexible. The Cash Flow Option ARM was designed to give you control over your mortgage payment. Choose one of four payment options each month based on your cash flow needs.

        Cash Flow Option Arm Minimum Payment    A payment that is set for 12 or 60 months at a reduced rate. The minimum payment rate for the 12 month option is 1.00% and the 60 month option is 1.90%. This option maximizes cash flow and may also defer payment of interest allowing 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 option arm. 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 your monthly cash flow. This option is not available if the interest only payment is less than the minimum payment.

        Fully Amortizing Payment Options    You may make a principal and interest payment based on a 30 year or 15 year payment schedule. I have included a Cash Flow Option ARM statement as well.

The Cash Flow Arm series allows you to choose your index from 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.

Additional Options    If you want for the security of a fixed payment while still taking advantage of the low payment rates, there is also 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 still have the four payment options to select from monthly to manage cash flow. You have the ability to increase the term of your loan from 30 to 40 years lowering your payment even 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 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

I have developed an Adobe document that detailing how this program works. Send me an email requesting a copy of "Understanding the Cash Flow Option Arm".

I have added a website dedicated solely to the Cash Flow Option Arm.

Here is a useful Cash Flow Option Arm  payment calculator

Read very important information about Cash Flow Option Arm Prepayment Penalties

Read more about Cash Flow 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.

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