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100% Minimum Payment Option Mortgages
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By Ben Afzal

Benefit

This is a newer loan that gives a borrower a lot of financial flexibility and the chance to make a smaller monthly payment.

This loan type is available to many different borrowers and many different property types.

DIfferent Loan Options

A borrower who gets this loan will typically have

  • first 80% is a minimum payment option loan
  • final 20% is a regular 2nd mortgage loan

The initial minimum payment start rate is around 2%, although it depends on the loan type, the lender, and the borrower’s circumstances.

How It Works

A minimum payment option loan allows a borrower to make a minimum payment that is less than the interest only payment. It allows a borrower to make a smaller monthly payment than most other loans.

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The loan can be structured on a 30 or 40 year loan term. When a borrower makes a minimum payment, the difference between that payment and the interest only payment is added onto the principal. The minimum payment option is usually available for the first 5 years only.

Credit Types

This type of loan is available for a range of credit types, although it helps to have better credit.

Property Types

This type of loan is available for different property types and in many different locations around the country.

To figure out your payments, use our free online mortgage calculators.

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For additional Mortgage Refinancing information
and resources visit Mortgage Refinancing.
(http://www.refinance-refinance.net)
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This entry was posted on Wednesday, September 27th, 2006 at 2:20 am and is filed under Refinance. You can follow any responses to this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback from your own site.

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