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Mortgage Payment Option Program

Mortgage Payment Option Program products are flexible. Mortgage payment option program products are my choice for my home and investment property.

Mortgage payment option program loans help manage monthly income and expenses. Mortgage payment option program loans give you control over your mortgage payment. Income varies and unplanned expenses come up. Our mortgage payment  is our largest monthly expense, and the least flexible.  Choose one of four payment options monthly based on your needs.

Request a copy of "Understanding Mortgage Payment Option Program Loans" by email. It is an Adobe document explaining how the 5 year option arm works.

        Mortgage Payment Option Program Loans Minimum Payment    A minimum payment is set for 60 months at a reduced rate. The current minimum payment rate is 1.90%. This  maximizes cash flow and may defer payment of interest allowing greater 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.

        Mortgage Payment Option Program Loans Interest Only Payment    Defer paying principal and improve your cash flow.  This option is not available if the interest only payment is less than the minimum payment.

        Fully Amortizing Payment Options    Make a principal and interest payment based on either a 30 or 15 year payment schedule. I have included a 5 Year Option ARM statement.

You may 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.

    Additional Options    You also may want to increase the term of your loan from 30 to 40 years lowering your payment even further. This is the approach I use on my own loans. If I want to use the minimum payment, I want that number as low as possible. LTVs are now 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 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
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

Learn more about mortgage payment option closing costs.

Read very important information about Mortgage Payment Option Prepayment Penalties

I have recently added a website dedicated solely to the Mortgage Payment Option Program.

Here is a useful Mortgage Payment Option Program payment calculator

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.

    Mortgage Payment Option ProgramPrequalify for your Mortgage Payment Option Program

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