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Power Option Mortgage Loan

Power Option Mortgage Loan products are flexible. I have converted my home and investment property to the Power Option Mortgage Loan. 

An issue for many is in managing income and expenses. Income varies and unplanned expenses come up. Our mortgage is our largest monthly expense, and the least flexible. The Power Option Mortgage Loan was designed to give you control over your mortgage payment. Choose one of four payment options monthly based on your cash flow needs.

        Minimum Payment    A payment that is set for 12 or 60 months at a greatly reduced rate. The minimum payment rate for the 12 month option is 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. Plus, this minimum payment can not increase by more than 7.5% each year. Read about the important tax considerations of an option power mortgage loan. 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 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 either a 30 year or 15 year payment schedule. I have included a Power Option Mortgage Loan statement as well.

The Power Option Mortgage Loan 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 Power Options    If you want the additional security of a fixed payment while taking advantage of the low Option Power Mortgage Loan payment rates, there is a 5 year fixed payment option. With the 5 year Fixed Payment, you have a fixed minimum payment for five years. You still have the four options to select from to manage your cash flow. You have the ability to increase the term of your loan from 30 to 40 years lowering your payment even further. ILTVs 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 the10 year average. Assumes that the Minimum Payment increases by the maximum 7.5% per year.

                    30 Fixed                    Power Option 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

I have developed an Adobe document detailing how this program works. Send me an email requesting a copy of "Understanding the Power Option Mortgage Loan".

Please email me with any questions about the Power Option Mortgage Loan

Learn more about Power Option Mortgage Loan Closing Costs

I have added a website dedicated solely to the Power Option Mortgage Loan.

Here is a useful Power Option Mortgage Loan payment calculator

Read very important information about Power Option Mortgage Loan Prepayment Penalties

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.

    Power Option Mortgage LoanPrequalify for your Power Option Mortgage Loan

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