Town Loans- Option ARMs/Pick-A-Payment

Option ARMs offer you the most flexibility with the most monthly payment options for a loan. They will help you free up the most cash flow to help you pay off high interest debt, increase your savings or money for investment puposes. After paying 15 years on a 30 year fixed loan , you still owe 80% of the original amount borrowed. After 23 years of payment you owe 50%. You can change this with Option ARMS. As depressing as that sounds, WE CAN HELP!! Accelerate the payoff of your mortgage considerably with the Re-Amortization Effect. Let us show you how. Call us today: 1.866.858.8696 Take back control of your money the way you want with up to four payment options each month:

Minimum payment:

• The lowest payment based on the start rate as low as .99 %.
• Choose this option to free up that extra cash flow and pay off debt, increase investments or savings or PAY OFF YOU MORTGAGE YEARS EARLIER by increasing your principle payments.
• This payment may increase or decrease by a PAYMENT CAP of 7.5% annually and is calculated using the initial PAYMENT rate for the first 12 months. The effective interest rate is calculated by adding the margin to the current index to give you the fully indexed or amortized rate.
• The entire loan is re-amortized EVERY TIME YOU MAKE A PAYMENT!!! This means you are only paying interest on your principle balance, similar to a credit card.
• A payment cap limits how much this payment can increase or decrease each year. Making only the minimum payment without increasing your principle payment back into the loan and paying monthly rather than bi-weekly can result in deferred interest.
• In the event your principal balance otherwise would increase to 110%-125% of your original loan amount, we will adjust your minimum payment amount to the fully amortized payment rate.

Interest-only payment:

• Keep payments manageable while paying all your interest. At those times when the Minimum Payment is not enough to pay the monthly interest due, you can avoid any possible deferred interest with this option.
• You pay the only the interest accrued during the month. Doing this will help you avoid deferred interest, yet your payments are still manageable and less than the fully amortized payment.
• Note:This option does not result in principal reduction.
  

Fully amortized payment:

• Reduce your principal and pay off your loan on schedule.
• It's calculated each month based on the prior month's interest rate, loan balance and remaining loan term.
• When you choose this option, you reduce your principal and pay off your loan on schedule.

15-year payment:

• Own your home twice as fast.
• If you want to build equity faster, pay off your loan quicker and save on interest, this is the option for you.
• It's calculated to amortize your loan based on a 15-year term from the first payment due date.

Advantages:

• Lower initial interest rate than fixed-rate mortgages
  
• Low minimum payment that adjusts annually
• 7.5% limit on payment increases or decreases
• Lifetime PAYMENT rate cap that protects you financially
• Up to 40-year terms available to help minimize your payments

Consider an Option ARM If:

• You want to minimize your house payment to pay off other debt, invest more in other areas or simply pay off you mortgage sooner than 30 years.
• You want to control the amount of tax-deductible interest you pay each month.
• You want to maximize your buying power.
• Your income tends to fluctuate or you're confident that your income will rise over the years.
• 15, 30, and 40 Year Terms
• Payment amount fixed for a year then may adjust annually.
• Fixed Advantage 60: fixed payment rate for 60 months, then converts to monthly adjustable Option ARM with annual payment change. S
• pecial Features Available Low Documentation

The Application
Click the Apply Online and choose option 1 Complete Application to Apply. Here's where we'll walk you through the application. Please call us so we can answer any and all questions you may have. 1.866.858.8696