Option One Mortgage Loans Getting An Option Arm Or Option One Mortgage Loan

Written by Carrie Reeder

Have you heard about or been interested in finding out more about option one mortgage loans? They are becoming very popular, but its important to understand how they work before you apply for one. I will describe, in this article, an overview ofrepparttar most common type of option ARM mortgage loan or option one mortgage loan.

How do they work? Option one mortgage loans are basically interest only mortgage loans, except thatrepparttar 149293 first year, you pay only 1.25% ofrepparttar 149294 interest onrepparttar 149295 loan. The remainder ofrepparttar 149296 interest that is accruing is being added torepparttar 149297 loan amount. The second year ofrepparttar 149298 loan you pay more interest until gradually you are paying either full interest only payments or fully amortized payments (interest & principle). The reasonrepparttar 149299 loans are called option loans is because every time you have a payment due, you haverepparttar 149300 option of payingrepparttar 149301 less than interest only portion, interest only or a fully amortized payment. This option would be good in a situation where your income is sporadic.

This mortgage loan type typically gives you 4 payment options in every bill.

Here are your typical monthly payment options:

Option #1 Pay a 15-Year fully amortized payment amount (p&i)

Option #2 Pay a 30-Year fully amortized payment amount (p&i)

Option #3 Payrepparttar 149302 interest-only portion ofrepparttar 149303 loan (Interest Only)

Option #4 Make a partial interest payment (1.25% - 1.95% depending on your loan type) and defer payingrepparttar 149304 additional interest torepparttar 149305 total loan amount. (Deferred interest can be counteracted by making bi-monthly payments and by property appreciation)

This type of loan is good if you want to:

Wait a while to refinance again If interest rates drop again, so does your payment. If you want to accelerate your payments and increase equity quick, pay more on your loan and it will be applied to future payments & will be directly applied torepparttar 149306 principle balance. Will you want a 30-year loan? Keeprepparttar 149307 option to pay your loan as a 30-year, 15-year, or interest only payments.

Pay Off Debt - Get Out Of Debt And Lower Your Monthly Payments

Written by Carrie Reeder

Debt consolidation can be confusing, especially if you have never considered contacting a debt consolidation company before. A debt consolidation company can give you free advice on reducing your monthly payments and show yourepparttar path to becoming debt free. High interest rates andrepparttar 149292 various fees charged by creditors can leaverepparttar 149293 average consumer unable to meet their monthly financial obligations. If you have found yourself overwhelmed by credit card debt and unsecured loan payments, debt consolidation may berepparttar 149294 answer you have been looking for.

The services offered by debt consolidation companies will not eliminate your debt overnight, but they will assist you in lowering your interest rates and monthly payment amounts. Debt consolidation is not an instant cure for your financial problems, but rather a tool that is available to consumers who can no longer affordrepparttar 149295 high payments and high interest rates charged by creditors. Instead of making high monthly payments to your creditors, you can drastically lowerrepparttar 149296 interest rates on your accounts and lower your monthly payments.

If you are currently makingrepparttar 149297 minimum payments on your credit cards and struggling to pay off loans, medical bills, and other unsecured debts, a debt consolidation company can give you a free evaluation of your financial situation and contact your creditors on your behalf to make new arrangements forrepparttar 149298 repayment of your debts. Debt consolidation is not a new loan; it is a re-negotiation ofrepparttar 149299 terms of your original accounts. In utilizingrepparttar 149300 services of a debt consolidation company you can pay off your debts in a much shorter time and pay less money each month.

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