BENEFITS OF A NEGATIVE AMORTIZATION LOAN

1. Increased savings and cash flow because of the low monthly payment. 
2. Easier to get loan approval.
3. Qualify for a bigger and better home.
4. Choice of 3 payment options each month.
5. Reduced doc option (Stated Income).
6. A Credit NOT required to qualify.
7. Low rate (0.50%, 1.0% or 1.25%).
8. Pay no points for a purchase and pay nothing for a refinance.

INCREASED SAVINGS AND CASH FLOW BECAUSE OF THE LOW MONTHLY PAYMENT

The additional 10 years of amortization (40 Year Amortization) plus the low interest rate (1.25%) will lower your monthly mortgage payment significantly. For example a $500,000 loan at 1.25% with a 40 Year Amortization has a monthly mortgage payment of $1,324. The monthly mortgage payment of a traditional loan with a 30 Year Amortization and an interest rate of 6.0% is $2,997. You will save $1,673 per month and $20,076 per year by going with a NEG AM Loan. With lower mortgage payments and the extra money from the increased cash flow you could purchase a new car, take that much needed vacation or invest for future needs, like your child's education, your retirement, etc.

EASIER TO GET LOAN APPROVAL

A NEG AM loans means a 40-Year Amortization and a low interest rate. This means your monthly payment is lower than a traditional loan with a 30-Year Amortization. A lower monthly payment means you have a better overall debt ratio (your debts relative to your income) and will have an easier time qualifying for a loan.  Typically lenders look for a debt ratio of 35-40%.

QUALIFY FOR A BIGGER AND BETTER HOME

With property values soaring, the NEG AM Loan has made homes more affordable for buyers. With a low interest rate and a 40-Year Amortization a home will cost you less per month. Since lenders look at your debt ratio to qualify you for the maximum loan amount, you will qualify for a more expensive home. 

CHOICE OF 3 PAYMENT OPTIONS EACH MONTH

With a NEG AM Loan you get the choice each month of 3 payment options. This is why a NEG AM Loan is also called a Flexible Payment Loan and a Pick A Payment Loan. You have the flexibility of choosing which type of payment to make every month. You can choose the low interest rate payment, the interest only payment or the principle and interest payment. The choice is always up to you.

REDUCED DOC OPTION (STATED INCOME)

While you can do a Full Documentation Loan, you don't have to. You can also qualify using Stated Income (reduced documentation). With Stated Income you don't have to provide tax returns, 1099s or W2 forms. It is much easier to qualify this way. This works really well for sales reps., business owners and independent contractors.

A CREDIT NOT REQUIRED TO QUALIFY

To qualify for a NEG AM Loan you will need a FICO score of 620. This is much lower than an A Credit score of 680.

LOW RATE (0.50%, 1.0% OR 1.25%)

While there are low rates of 1% available for NEG AM loans, we specialize in the 40 Year Amortization. The 1% rate is only for 30 Year Amortization. The 40 Year Amortization NEG AM loans have the following rates:

o        0.50%

o        1.25%

The 40 Year Amortization rates wind up having a lower monthly payment than the 1% loans with a 30 Year Amortization.

PAY NO POINTS FOR A PURCHASE AND PAY NOTHING FOR A REFINANCE

On purchases there will be no points for the loan. On refinances there will be no costs, no points and no fees. You will pay nothing to refinance. Please see the No Costs, No Points and No Fees page for more details. Here is the link to this page:

Click HERE