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    Minimum Payment Option Basics

    A minimum payment option loan offers the borrower an opportunity to make a small minimum monthly mortgage payment instead of the larger usual payment.

    A typical 30 year fixed mortgage requires a borrower to pay both principal and interest. Slowly over the 30 year life of the loan the amount is paid off.

    A minimum payment option loan works very differently.

    This loan type allows a borrower to make a much smaller minimum payment each month, usually for the first 5 y

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    make a small minimum monthly mortgage payment instead of the larger usual payment.

    A typical 30 year fixed mortgage requires a borrower to pay both principal and interest. Slowly over the 30 year life of the loan the amount is paid off.

    A minimum payment option loan works very differently.

    This loan type allows a borrower to make a much smaller minimum payment each month, usually for the first 5

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    ar fixed mortgage requires a borrower to pay both principal and interest. Slowly over the 30 year life of the loan the amount is paid off.

    A minimum payment option loan works very differently.

    This loan type allows a borrower to make a much smaller minimum payment each month, usually for the first 5

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    the loan the amount is paid off.

    A minimum payment option loan works very differently.

    This loan type allows a borrower to make a much smaller minimum payment each month, usually for the first 5

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    loan type allows a borrower to make a much smaller minimum payment each month, usually for the first 5 years of the loan.

    The minimum payment option may be so low that the borrower can pay less than the interest owed each month.

    The minimum payment amount is based on a minimum payment rate. This can be as low as 1%. This is not the same thing as the interest rate, which is usually much higher. The minimum payment rate is the rate at which a borrower can make payments. Any payment under the interest only

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