The Option ARM NJ Loan Program
The option ARM NJ loan program is one of the most inventive mortgage programs available. The reason is because it is unique NJ loan program that uses your mortgage and your acquired equity to actually make you money. This type of NJ loan program is best for borrowers who either are looking to leverage their home’s equity more actively or are borrowers with income that is variable during the year.
Why Is It Called an Option ARM NJ Loan Program?
It is called an option ARM NJ loan program because you get four choices every single month thus giving you the ‘option’ of how you want to pay your mortgage from choice to choice every month when the billing statement arrives. In fact, the billing statement has the choices figured for you and all you have to do is choose a payment that will pay the mortgage in 30 or 15 years, and interest only payment or a minimum payment based on your special low start rate that comes with the NJ loan program.
Specific Features of an Option ARM NJ Loan Program
- There are four choices each month.
- The option ARM NJ loan program is available in 15, 30 or even 40 year terms.
- The minimum payment is based on a 30-year fixed start rate. This minimum increases 7.5% each year. The start rate will either be 1.25% or 2.25% depending on certain variables.
- The rate of interest is tied to an Index: either the Monthly Treasury Averaged Index or the Cost of Funds Index.
- The rate you pay for the unique NJ loan program is the Index plus the margin that you negotiate at closing. This margin can vary from 1.75% to 3%.
- Your rate will never exceed 9.95%.
Is the Option ARM NJ Loan Program Right For You?
If you are an active investor, there are no other NJ loan programs that can compare with the flexibility of this mortgage type when it comes to investing your money and leveraging your home’s equity for making money with what you have. The option ARM NJ loan program is a great product for those individuals wishing to invest what would be going to their principle on their home in other faster growing retirement funds.
The option ARM NJ loan program is also helpful for borrowers who have variable income during the year or get a lump sum bonus at the end of the year as this NJ loan program affords them to make just minimum payments during their lower income months and pay extra in the months of higher income or when the lump sum bonus arrives. Therefore, commissioned borrowers or self-employed business owners will benefit from this type of NJ loan program.
This type of NJ loan program is not a mortgage for someone who just wants to pay off their house or is on a low income or only intends on making the minimum payment in order to save money each month. There are other NJ loan programs that are better suited for these types of borrowers.