|WE PROVIDE FINANCIAL SOLUTIONS INSTEAD OF LOANS YOU DON'T NEED|
|BOOKMARK US | MORTGAGE KNOWLEDGE||HOMEPAGE | FULL APPLICATION | LOAN-PROGRAMS | FINANCIAL CALCULATORS | CONTACT US|
TWO STEP QUICK APPLICATION FORM
First Rate Lending knows what it takes to be a successful lender. Since the start of our operation, our dedication to exceed your expectations and guarantee your satisfaction has made us what we are today.
From start to finish in the loan process, we provide no less than exceptional service to our most prized possessions: our customers.
As a leader in the mortgage industry, we aim to deliver excellence in every area. Based on client feedback, we constantly strive to improve our systems and technology to improve our efficiency and success ratio.
Because market conditions are constantly in flux, we keep our fingers on the pulse of mortgage backed securities to ensure that you get the best interest rate possible.
NEWS & ARCHIVES
¤ Understanding Credit Scoring & Credit Repair
¤ Time to transition your ARM into a fixed rate?
¤ Much to Gain by Pursuing Home Ownership?
¤ Optimizing Credit Scores and Interest Rates
¤ Is Refinancing Your Mortgage For You?
¤ Protecting your Credit During Divorce
¤ Option ARM
¤ Sensational Headlines
¤ Falling behind
¤ Home Sales On The Rise?
¤ Enhance Your Financial Freedom
¤ The reverse mortgage NEW
¤ Home improvement loans NEW
¤ Credit scores and interest rates NEW
¤ Making Your Mortgage Invincible NEW
¤ Why you should care? NEW
¤ The Sub-prime Default Crisis NEW
What is this 1% loan anyway?
Debunking the Negative Amortization Adjustable Rate Mortgage
Without question, loans that have the potential for negative amortization (Option ARMs) are the most complicated and sophisticated mortgage programs available in today's marketplace. So how can you be certain that you really understand this product, and how can you be sure that you understand its benefits and risks?
Let's start with the benefits
The greatest benefit of the Option ARM is its flexibility and cash flow. The primary benefits are to give borrowers the choice of either deferring a portion of their interest to achieve financial goals faster or to help real-estate investors increase their cash flow.
That said, with flexibility comes responsibility. The terms and conditions of Option ARM contracts vary widely from one investor to the next. Structured responsibly, the Option ARM offers advantages over traditional programs. Structured poorly, you have a recipe for financial stress.
The right candidates for Option ARMs
There are two types of clients who are most appropriate for Option ARMs:
Who are NOT the best candidates for Option ARMs?
Because the minimum payment of $1,300 is not enough to cover the interest owed, the resulting shortage in payment is added to the loan amount, making the following month's balance $500 higher.
There are at least two other payment options we will consider here:
1. An Interest Only payment is also available to the borrower as a payment option.
2. Fully amortized principal and interest payments are also an option. If this payment option is chosen, the loan essentially becomes a typical ARM, allowing your client to make a payment that will fully amortize the loan in 15 to 30 years, or any other term that the borrower prefers.
The borrower should select a mortgage originator who has the ability to help you better understand the mortgage industry's most sophisticated mortgage program, the Negative Amortization Adjustable Rate Mortgage, or The Option ARM.
President First Rate Lending
|HOMEPAGE | FULL APPLICATION | LOAN-PROGRAMS | FINANCIAL CALCULATORS | CONTACT US|