Interest Only Jumbos?
YES, up to $1.5 million
Tied to the Libor
The LIBOR-indexed
ARM offers borrowers a mortgage with an aggressive initial rate plus protection
against wide swings in interest payments. In addition, the LIBOR index
helps international investors match their cost of lending to their cost
of funds, boosting secondary market acceptance of LIBOR securities.
London
Inter Bank Offering Rate (LIBOR) is an average of the interest rate
on dollar-denominated deposits, also known as Eurodollars, traded between
banks in London. The Eurodollar market is a major component of the International
financial market. London is the center of the Euromarket in terms of volume.
The LIBOR is an international index which follows the world economic
condition.
Every six
months, the interest rate adjusts. Each interest rate adjustment is accompanied
by a payment change that is sufficient to amortize the current unpaid
principal balance over the remaining term.
Lower initial
payments: Initial payments are lower than those for fixed-rate mortgages,
providing attractive financing for those who plan to stay in their homes
for shorter periods of time.
Interest
rate protection: Borrowers are protected from wide fluctuations in interest
rates and from payment shock by semi-annual and lifetime interest rate
caps. Mortgages do not have negative amortization.
95%
ltv refi
credit scores of 680
ratios of 33-40
FULL DOC
(stated to 70% ltv)
What
are current Libor Rates?
The
6 month libor loan adjusts every six months to the LIBOR published in
the Wall Street Journal. If it adjusted today, it would be 1.75% above
the libor, which is at the time of this writing 1.030.
LIFE
TIME CAP IS 12, But
the libor has never been over high 5's which would compute today to high
6's if you were on this loan.
If
you read the WSJ once a month, you'll know where it will adjust, and when
and if to refinance to a fixed rate loan. Research the libor at Bloomberg.com;
or if this is too complicated (I'm learning it, too), enroll in the FREE
Bloomberg University, online investing/manage your money training.
This
interest rate does not include cash out - only rate and term
refis. You may opt to roll closing costs into the loan amount.
There is a .5 discount for stated loans.
IMPORTANT!!
I'm not a securities analyst or
a licensed financial advisor.
I sell mortgage loans.
This is not to be construed in any way, shape,
or fashion as advice. It is solely informational,
and a source of other data so that YOU can make
an informed decision.
Could
it get any easier?
Call Traci, 770)428-1392
or send an email and
we'll call you
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On
Pay Option Loans, we have interest rates starting at 1.25%
. . . documentation type, credit score ltv and
loan purpose all affect rate.
90
% CLTV Primary Residence,
Second Homes and
Investment Properties
-Initial 3 Month Term with
Start Rate of 1.25%,
-Loan Amounts up to $ 2M, or to $2.2M with a 60/10 Piggyback !!
I
now have a ten year interest only term:
Interest
Only for 10 years .
to $10,000,000
(ten
million)
25
year term; 10 year i/o
The
fine print
PERIODIC
CAP: 5%
LIFETIME CAP: Greater of 12% or initial interest rate plus 5%
INDEX: 6 MONTH 1.030%
LOAN TERM:
NEGATIVE AMORTIZATION: NONE
CONVERSION OPTION: NONE
Owner
Occupied: Purchase,
Rate & Term Refinance and
Cash-Out Refinance
Second Homes Purchase and Rate & Term Refi ONLY
INVESTMENT
PROPERTY - Ineligible
FICO SCORE - Minimum 680
STATED
INTEREST ONLY
Minimum Score 700
Details,
details, details . . .
Interest
Only for Five Years;
then goes to a 25 year amortization, P&I
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