Payment Options

The primary feature which makes this loan program so flexible and customized, if you will, for each borrower is the payment options. Each monthly statement will reflect four payment options:

1. The minimum payment (remember, you must always make at least the minimum payment),
2. An interest only payment,
3. A fully amortizing payment based on a 30-year term, and
4. A fully amortizing payment based on a 15-year term.

Of course, you can really pay anything greater than the minimum payment, so the borrower has a myriad of payment possibilities. However, the four shown above will be the ones reflected on the monthly mortgage payment.

Returning to our sample loan, let's see how this works:

• $200,000 loan amount
• 1% start rate
• 7.5% annual payment cap
• MTA index
• 2.75% margin
• 110% neg limit

(to be continued as I have to figure out how to insert a table/spreadsheet -- Blogger Help isn't much help and you can consider me a vitural virgin at this blogging stuff)