If you’re looking for maximum possible qualifying power, or LOWEST
POSSIBLE PAYMENTS the Option ARM loan is the loan for you. With a
super-low introductory rate as low as 1%, you can qualify for a larger
loan, lower payments – and a bigger house.
Ideal for first-time
buyers,
these no
down-payment
mortgages
can help
reduce or
eliminate
nearly every
cost
associated
with
obtaining a
home loan.
These
programs
normally
combine two
loans: An
80% first
mortgage,
and a 20%
second
mortgage.
The interest
rate is
typically
the weighted
average of
the two
loans.
Conforming
long-term,
fixed-rate
and
adjustable
loans that
meet Fannie
Mae and
Freddie Mac
loan limits
and property
and borrower
guidelines.
Generally
has higher
loan limits
than FHA and
VA.
Allows borrowers
with
less-than-perfect
credit to
qualify for
competitive
interest
rates to
consolidate
debt and
lower
payments or
make home
improvements.
Ideal for the
self-employed
with good
credit,
loans where
borrowers
agree to put
down 25 to
30% equity
in exchange
for reduced
documentation
requirements.
If
you’re
looking
for
maximum
possible
qualifying
power,
or
LOWEST
POSSIBLE
PAYMENTS
the
Option
ARM loan
is the
loan for
you.
With a
super-low
introductory
rate as
low as
1%, you
can
qualify
for a
larger
loan,
lower
payments
– and a
bigger
house.
The
Option
ARM loan
has a
very
stable
index
(the
index is
averaged
over a
12 month
period
of one
year
Treasury
constant
maturities).
This
averaging
procedure
means
the
index
fluctuates
less
than any
other
index we
offer.
In turn,
your
rate is
more
stable.
This
loan
offers
four,
flexible
payment
options
that you
can
choose
from
each
month,
giving
you
maximum
control
over
your
finances.
Payment
Options:
Minimum
Payment
The
lowest
payment
option,
calculated
at as
low as
1% to
1.75%,
which
will
help you
save the
most
cash
each
month.
Interest
Only
Payment
Will
keep
your
payment
low, and
pay all
interest
due.*
Fully
Amortized
Payment
Will
reduce
your
principal,
and pay
your
loan off
on a
thirty
year
term.*
15 Year
Payment
A
higher
payment,
but will
pay your
loan off
on a
fifteen
year
term.
*
Applicable
only if
these
payment
amounts
exceed
minimum
payment
option.
Note:
This
loan is
all
about
choices.
You
choose
your
monthly
payment
every
month.
You can
make the
fully
amortized
payment,
and your
balance
will
decrease
like any
other
loan (or
make a
15-year
payment
and own
your
home in
half the
time).
You can
save
cash in
any
month by
making
the
interest
only
payment,
and your
balance
remains
the
same.
Or, you
can save
even
more
cash by
making
the
"minimum
monthly
payment",
and the
interest
you
don’t
pay will
be added
to your
balance.
There
are
risks
with
this
type of
loan.
Because
your
"minimum"
monthly
payment
may be
less
than the
interest
rate
charged
on your
loan
(after
the
first
change
date),
your
loan
balance
could
increase.
However,
your
maximum
loan
balance
increase
is
limited
to 110%
of your
initial
loan
amount.
Every
five
years,
your
minimum
payment
will be
recalculated
based on
the
unpaid
principal
balance,
and
re-amortized
for the
remaining
term of
the
loan,
which
could
mean
higher
monthly
payments.
Between
these
five
year
adjustments,
your
minimum
payment
will not
increase
more
than
7.5%
annually.
For
details,
please
read and
review
the
program
disclosure,
which
will be
provided
to you
within
three
days of
your
complete
application.
If you
are
self-employed,
anticipate
higher
income
in the
next few
years,
want to
maximize
your tax
write-offs
for
mortgage
interest,
or have
seasonal
or
annual
increases
in
income,
this
could be
the loan
for you.
Speak to
a
customer
service
representative
by
calling
888-613-8637,
or send
us and
e-mail
from our
Contact
page to
get more
information
on the
12 MAT
Adjustable
Rate
loan
from
Countywide
Home
Loans.
How
much
cash
will
I
need
to
purchase
a
home?
Answer
Q
:
How
do I
know
how
much
house
I
can
afford?
A
:
Generally
speaking,
you
can
purchase
a
home
with
a
value
of
two
or
three
times
your
annual
household
income.
However,
the
amount
that
you
can
borrow
will
also
depend
upon
your
employment
history,
credit
history,
current
savings
and
debts,
and
the
amount
of
down
payment
you
are
willing
to
make.
You
may
also
be
able
to
take
advantage
of
special
loan
programs
for
first
time
buyers
to
purchase
a
home
with
a
higher
value.
Give
us a
call,
and
we
can
help
you
determine
exactly
how
much
you
can
afford.
Q
:
What
is
the
difference
between
a
fixed-rate
loan
and
an
adjustable-rate
loan?
A
:
With
a
fixed-rate
mortgage,
the
interest
rate
stays
the
same
during
the
life
of
the
loan.
With
an
adjustable-rate
mortgage
(ARM),
the
interest
changes
periodically,
typically
in
relation
to
an
index.
While
the
monthly
payments
that
you
make
with
a
fixed-rate
mortgage
are
relatively
stable,
payments
on
an
ARM
loan
will
likely
change.
There
are
advantages
and
disadvantages
to
each
type
of
mortgage,
and
the
best
way
to
select
a
loan
product
is
by
talking
to
us.
Q
:
How
is
an
index
and
margin
used
in
an
ARM?
A
:
An
index
is
an
economic
indicator
that
lenders
use
to
set
the
interest
rate
for
an
ARM.
Generally
the
interest
rate
that
you
pay
is a
combination
of
the
index
rate
and
a
pre-specified
margin.
Three
commonly
used
indices
are
the
One-Year
Treasury
Bill,
the
Cost
of
Funds
of
the
11th
District
Federal
Home
Loan
Bank
(COFI),
and
the
London
InterBank
Offering
Rate
(LIBOR).
Q
:
How
do I
know
which
type
of
mortgage
is
best
for
me?
A
:
There
is
no
simple
formula
to
determine
the
type
of
mortgage
that
is
best
for
you.
This
choice
depends
on a
number
of
factors,
including
your
current
financial
picture
and
how
long
you
intend
to
keep
your
house.
Countywide
Home
Loans
can
help
you
evaluate
your
choices
and
help
you
make
the
most
appropriate
decision.
Q
:
What
does
my
mortgage
payment
include?
A
:
For
most
homeowners,
the
monthly
mortgage
payments
include
three
separate
parts:
Principal:
Repayment
on
the
amount
borrowed
Interest:
Payment
to
the
lender
for
the
amount
borrowed
Taxes
&
Insurance:
Monthly
payments
are
normally
made
into
a
special
escrow
account
for
items
like
hazard
insurance
and
property
taxes.
This
feature
is
sometimes
optional,
in
which
case
the
fees
will
be
paid
by
you
directly
to
the
County
Tax
Assessor
and
property
insurance
company.
Q
:
How
much
cash
will
I
need
to
purchase
a
home?
A
:
The
amount
of
cash
that
is
necessary
depends
on a
number
of
items.
Generally
speaking,
though,
you
will
need
to
supply:
Earnest
Money:
The
deposit
that
is
supplied
when
you
make
an
offer
on
the
house
Down
Payment:
A
percentage
of
the
cost
of
the
home
that
is
due
at
settlement
Closing
Costs:
Costs
associated
with
processing
paperwork
to
purchase
or
refinance
a
house
*Rate is
variable and subject to change. The payment rate
starts at 1%. it is an adjustable loan and the
rate changes monthly, but the payments are
preset for 5 years. Rate is based on the MTA
index and it is negatively amortized. Actual
payment will vary based on individual client
situation.
