Don’t Get Burned
Option ARMs* are some of the most complicated loan products on the market today. When used correctly they can be great investment tools, but when used incorrectly they can cause severe financial hardship. By getting an Option ARM evaluation from one of our loan professionals, you’ll get a better understanding of your Option ARM, so you can stop merely paying the mortgage and start building your wealth.
What is the Recast Point?
A recast point is an adjustment to the current mortgage—a loan modification—that does not involve the issuance of a new mortgage guaranty insurance certificate.
Why does the Recast Point Matter?
Payments increase when loans are recast. Borrowers who aren’t aware of their recasting points often experience payment shock or worse, an inability to meet the new, higher monthly payment.
We can HELP by:
- Reviewing the Terms
We can give you a detailed, side-by-side comparison of how your current loan compares to another loan program. You’ll see a comparison of not only monthly payments, but also net savings, equity accumulation and principle reduction.
- Likely Projections
We show yo how various loan programs will perform based on interest rate trends, margin and length of loan term.
- Calculate the Recast
We provide concrete information on exactly when your Option ARM will be recast, and what your new payment will be once it is reamortized.
- Evaluate Options
You’ll get to see for yourself how a new loan program’s payment, terms and equity accumulation differs from your current mortgage.
An Option ARM or any ARM for that matter can help you generate wealth or can cause you financial hardship. The sooner you become educated about the implications of having an Option ARM, the sooner you will be empowered to make a decision about its appropriateness for your goals. Let us help you!
* Option ARM: An adjustable rate mortgage with flexible payment options, monthly interest rate adjustments, and very low minimum payments in the early years. Also called “Cash Flow ARMs,” “Pay Option ARMs,” “Payment Option ARMs,” or “Flex Pay Mortgages.”