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We recently received an application from
Angela P. who needed to refinance her California
home. While finding out her specific goals for
the refinance I learned that she was a foster
mom and cared for multiple "crack" babies that
had been taken away from their mothers at birth
because of testing positive for an illegal
substance during labor, states Gary Rees of
GoldMedalMortgage.com
She was trying to utilize the equity in her home
to remodel and add a bedroom to make it more
comfortable for the two teenage and two newborn
children her and her husband care for.
For their situation I decided that a Pay Option
mortgage loan program would give them the cash
flow needed to cover shortfalls. It also lowered
their mortgage payment over 1500 a month,
continues Rees.
A Pay Option Mortgage Loan allows the complete
flexibility to decide, every month, which of
four mortgage payments you would like to
make.
This program is ideal for anybody that has
fluctuating income such as the self-employed.
Pay Option is also an excellent choice if you
are looking to buy a new home and want the
lowest possible monthly payment, or if you
simply just want to lower your existing mortgage
payment.
The Pay Option Mortgage is a relatively new
product that allows you four payment options
each month.
1. 15 year payment- Pay your loan off and build
equity faster as well as save thousands of
dollars in interest
2. 30 year payment- This option will let you
know how much to pay to have your home free and
clear in the standard thirty years
3. Interest only option- This option allows you
to pay only the interest portion of your monthly
payment so you can increase monthly cash
flow
4. 1% Minimum payment-This option allows you to
pay your mortgage at a 1% rate of interest for
maximum savings
The Pay Option Mortgage is the absolute best
adjustable mortgage product available today. It
has built in features that protect you
from the typical worries associated with an
adjustable rate mortgage.
One is the fact that your payment cannot
increase more than 7.5% above the previous year
for the first five years. Another gives you the
option to convert to a fixed rate mortgage after
the first three years. With these features in
place you can rest easy with your new adjustable
mortgage.
Here is an example of what a Pay Option Mortgage
could for you
Estimated Current Monthly Payment - $1663.26
New first year payment - $833.13
Estimated increased monthly cash flow-
$830.13
Estimated increased yearly cash flow -
$9961.52
Disclaimer-First years interest rate 1.25%.
Interest charged at 3.45% for the first month.
APR 3.74% subject to increase monthly. 30-year
loan.
This loan may have negative amortization. Max
increase/decrease in monthly payment is 7.5% per
annum for the first five years. This is an ARM
product.
Example payments based on 7.0% interest rate and
$250000 loan.
During the loan process I got a chance to visit
her home and was really impressed by the
cleanliness of both her home and all the kids. I
have three of my own and I can tell you it's a
challenge to keep up the house and the kids and
the homework.
Clearly a great family! We decided to waive our
fees and pick up the costs involved in this
transaction for Mr. and Mrs. P who are providing
love and shelter to the innocent children
victimized by addiction."
It was the least we could do for this amazing
family that breaks even after buying clothes and
food for the kids. For Angela and her husband,
this is truly a labor of love!î concludes
Rees.
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