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Interest Only Adjustable Rate Mortgage

Interest only adjustable rate mortgage products are an excellent choice for many individuals. Interest only adjustable rate mortgage products are designed to offer the lowest mortgage payment as you are not paying principal in your mortgage payment. Interest only adjustable rate mortgage products allow you to buy more home than with a fully amortizing mortgage. Interest only adjustable rate loans are flexible. You may make additional payments toward your principal balance at any time. If you do, your next payment will be lower as the interest only mortgage payment is calculated on the current mortgage balance. With a fully amortizing mortgage any additional contributions to principal do not change the payment and are not accounted for until the end of the mortgage. I am a mortgage broker specialized in the interest only adjustable rate mortgage with 237 lenders offering the interest only adjustable rate mortgage to ensure you get the best mortgage for your specific situation.

Interest only adjustable rate mortgage products were originally designed for individuals whose income is cyclical. For example, a sales executive with a low base salary but bonus payouts would benefit from an interest only adjustable rate mortgage. You have the lowest possible mortgage payment when no bonus is paid and you may make contributions to the principal balance when the bonus is paid. However, I am seeing individuals in many situations choose an interest only adjustable rate mortgage to lower their mortgage payment, sometimes significantly.

Interest only adjustable rate mortgage products are available for a 30 or 40 year term, with the first 10 years interest only and the final 20 years fully amortizing although I am now seeing some progressive lenders offering this interest only option on ARMs. Reduced documentation Interest only mortgage adjustable rate mortgage products are available as well.

Again, an interest only adjustable rate mortgage is not the right choice for everyone, but it can be a very effective choice for some individuals. Please give me a call or send an email and I will be happy to discuss this alternative with you.

An example of how powerful this tool can be:
On a $250,000 mortgage at 6.000% for 30 years-
Principal and Interest payment= $1498.88
Simple Interest mortgage payment at 6%= $1250.00
Total Monthly savings= $248.88

If you want to make the comparison for your own specific situation, calculators to find the amortizing payment are available on this website. The math to find the simple interest payment is, Loan Amount x Interest Rate / 12.

Of all of the programs available, the Cash Flow Interest Only adjustable rate mortgages offers the greatest flexibility by far.

I have just developed a short PowerPoint presentation in .pdf format on interest only adjustable rate mortgages, some real world examples, and some suggestions on how best to use them available by email

Read more about interest only adjustable rate mortgage Closing Costs

Learn more about the current Credit Crisis and how it affects you. From the CMPS Institute.

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 debt is structured today can have a life changing effect in the years to come.  Read more about this free, no obligation service.

Interest Only adjustable rate mortgagePrequalify for your interest only adjustable rate mortgage.

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