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    ick tips on how this works:

    Current loan balance

    350,000

    Term

    30

    Index value

    3.50%

    Loan margin

    3.00%

    Fully amortizing rate

    6.50%

    Annual minimum payment si

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    Benefit

    The benefit of this loan is that it allows you to make a minimum payment each month, often even below the interest-only level. This type of loan option can dramatically reduce your monthly payments.

    How It Works

    The minimum payment option loan allows you to make a choice each month about the amount of mortgage you want to pay (that is why there is an "option" on your monthly payment).

    The payment options typically are:

    minimum payment

    interest-only

    30 year fixed

    15 year fixed

    Each payment option increases the size of your monthly payment.

    You can typically make minimum payments for the first five years of the loan. If you pay the minimum payment the difference between the minimum payment and the interest only payment is added onto the principal of the loan.

    Example

    Here's some quick tips on how this works:

    Current loan balance

    350,000

    Term

    30

    Index value

    3.50%

    Loan margin

    3.00%

    Fully amortizing rate

    6.50%

    Annual minimum payment si

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    ow It Works

    The minimum payment option loan allows you to make a choice each month about the amount of mortgage you want to pay (that is why there is an "option" on your monthly payment).

    The payment options typically are:

    minimum payment

    interest-only

    30 year fixed

    15 year fixed

    Each payment option increases the size of your monthly payment.

    You can typically make minimum payments for the first five years of the loan. If you pay the minimum payment the difference between the minimum payment and the interest only payment is added onto the principal of the loan.

    Example

    Here's some quick tips on how this works:

    Current loan balance

    350,000

    Term

    30

    Index value

    3.50%

    Loan margin

    3.00%

    Fully amortizing rate

    6.50%

    Annual minimum payment si

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    t options typically are:

    minimum payment

    interest-only

    30 year fixed

    15 year fixed

    Each payment option increases the size of your monthly payment.

    You can typically make minimum payments for the first five years of the loan. If you pay the minimum payment the difference between the minimum payment and the interest only payment is added onto the principal of the loan.

    Example

    Here's some quick tips on how this works:

    Current loan balance

    350,000

    Term

    30

    Index value

    3.50%

    Loan margin

    3.00%

    Fully amortizing rate

    6.50%

    Annual minimum payment si

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    ts for the first five years of the loan. If you pay the minimum payment the difference between the minimum payment and the interest only payment is added onto the principal of the loan.

    Example

    Here's some quick tips on how this works:

    Current loan balance

    350,000

    Term

    30

    Index value

    3.50%

    Loan margin

    3.00%

    Fully amortizing rate

    6.50%

    Annual minimum payment si

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    ick tips on how this works:

    Current loan balance

    350,000

    Term

    30

    Index value

    3.50%

    Loan margin

    3.00%

    Fully amortizing rate

    6.50%

    Annual minimum payment size increase

    7.50%

    Loan 1

    Minimum payment rate

    1.00%

    Monthly Payments

    1,126

    Annual Payments

    13,509

    Monthly Payments

    Loan 1

    Monthly payments year 1

    1,126

    Monthly payments year 2

    1,210

    Monthly payments year 3

    1,301

    Monthly payments year 4

    1,399

    Monthly payments year 5

    1,503

    Annual payments

    Loan 1

    Annual payments year 1

    13,509

    Annual payments year 2

    14,522

    Annual payments year 3

    15,611

    Annual payments year 4

    16,782

    Annual payments year 5

    18,041

    Total payments years 1-5

    78,465

    To figure out your payments, use our website's mortgage calculators.

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    BB link (for phorums):
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