Purchase or Refinance
Owner Occupied
Income Type |
Payment Rate |
LTV |
FICO |
Max Loan Amnt |
Full Doc (Verified Income) |
3.5% |
80% |
680 |
$750,000 |
Full Doc (Verified Income) |
1.95% |
75% |
680 |
$3,000,000 |
Stated Income (No Income Documentation) |
3.5% |
80% |
680 |
$750,000 |
Stated Income (No Income Documentation) |
2.15% |
70% |
700 |
$3,000,000 |
Investment Properties
Income Type |
Payment Rate |
LTV |
FICO |
Max Loan Amnt |
Full Doc (Verified Income) |
3.5% |
70% |
680 |
$700,000 |
Full Doc (Verified Income) |
2.15% |
65% |
680 |
$3,000,000 |
Stated Income (No Income Documentation) |
2.45% |
60% |
700 |
$3,000,000 |
Please Contact us or e-mail for details and review of your scenario. Also you can request online rate quote.
Cash Out Loans
Owner Occupied
Income Type |
LTV |
FICO |
Max Loan Amnt |
Full Doc (Verified Income) |
80% |
680 |
$750,000 |
Stated Income (No Income Documentation) |
80% |
680 |
$750,000 |
Investment Properties
Income Type |
LTV |
FICO |
Max Loan Amnt |
Full Doc (Verified Income) |
65% |
680 |
$1,000,000 |
Stated Income (No Income Documentation) |
65% |
680 |
$1,000,000 |
Please Contact us or e-mail for details and review of your scenario. Also you can request online rate quote.
Option ARM Loans Explained!
Option ARM loans have become very popular lately
however there are a lot of confusion and questions about this program.
The following is a brief explanation for Option ARM loan. For further
information please contact
us.
Option ARM
loans offer multiple choice of payment each month thus the name
Option ARM Many are confused about the 1% interest rate on these
loans. Unlike other loans which utilize one interest rate, Option ARM
use two rates one for calculation of minimum monthly payment and
the other for calculation of the interest. The minimum monthly payment
is calculated using the 1% (slightly higher for stated, cash out,
investment or 40-year term) rate. For example the minimum monthly
payment on $300,000 loan at 1% is $964 for 30-year term or $758
for 40-year term. The minimum monthly payment is fixed for the first
year and increases by 7.5% for the first 5 years: Here is the payment
schedule for $300,000 loan for both 30 and 40 year term:
| |
30-Year |
40-Year |
| Year
1 |
$964
|
$758 |
| Year
2 |
$1,037 |
$815
|
| Year
3 |
$1,115 |
$876
|
| Year
4 |
$1,198 |
$942
|
| Year
5 |
$1,288 |
$1,013
|
Meanwhile
the interest is calculated based on the index of your choice such
as MTA, COFI, LIBOR, etc. plus a margin. MTA is the Monthly Treasury
Average; COFI is Cost of Fund Index. These indexes change every
month based on the bond rate and the economy. For October 2005 MTA
is at 3.163%, COFI is at 2.870% and LIBOR is at 3.890%. A margin
is added to these rates to arrive at the final rate. Typically the
margins are in 2.50% to 3.50% range based on income, credit, cash
out, etc. Indexes are adjusted monthly resulting changes in the
final rate. For example at 2.65% margin the monthly interest rate
for MTA (October 2005) is 3.163% + 2.65% = 5.813% which is rounded
to 5.875%
The
interest payment for $300,000 loan at the above interest rate is
$1,468. The interest payment changes every month but the minimum
monthly payment remain at $964 constant for the first year.
Every
month you have the option of paying the minimum monthly payment
($964) or the interest only ($1,468). If you choose to pay the minimum
payment then the unpaid interest ($1,468-$964=$503) is deferred
and added to the balance of your loan. If you decide to pay the
monthly interest payment then nothing is deferred and added to your
loan.
In
addition to the above two options you also can make principal and
interest payment which is $1,774 per month.
|
