The Pay Option ARM loan has become a very popular product across the country and the number of consumers opting to refinance or buy a home with a Pay Option ARM loan is growing steadily each year. Please if you don't read anything else about the Pay Option ARM, know this: the Pay Option ARM loan is not a good loan for everybody nor does it work exactly as many companies out there state it does. The Pay Option ARM can be a very dangerous home loan program if not used properly or if it is obtained without a clear picture of how the program works. You can see negative amortization with this loan, which means that your loan balance or mortgage balance would actually increase instead of decrease. This can be very dangerous for some consumers who opt to only make the minimum payment each month. Also, the interest rate IS ADJUSTABLE on the mortgage program too. Dont let anybody tell you it is a fixed rate or a fixed rate for 5 years. That is not quite true and it is something that I commonly hear being told to clients around the nation. Again, it is not a fixed rate program and your interest rate will adjust each month. This type of mortgage financing, the Pay Option ARM, is best for strong borrowers with excellent credit scores, who know how to manage their credit well, and who have unstable or not steady incomes. Self-employed, commissioned and 1099ed employees are usually good candidates for these programs. The program can also be used for many other situations, but for the right borrowers. Many mortgage professionals may push this program because they can usually make a good deal of money from this type of loan while presenting you with a mortgage with an unbelievable low payment that really catches your attention. Ask to see all of your mortgage options besides the Pay Option ARM so that you can make an educated decision on what to do and whether this is the right type of loan for you. If you are working with anyone and have any questions about this type of loan that your current mortgage professional will not answer or you dont feel comfortable with his/her explanation please email or call me and I will discuss the loan in full to you to help you make a wise decision. Remember your home and mortgage are the largest investments most people will ever make and it is best to have all of the facts before making a decision. You can reach me at 888-418-4467 or email me at dave@gofirstsecurity.com.

We are a mortgage company that can provide home loan and mortgage financing for the entire states of Ohio, Florida and Colorado. Our main office located in the Cleveland area of Ohio and we are extremely familiar with the entire northern Ohio area. Some of the more popular communities that we service are, but not limited to: Avon, Avon Lake, Westlake, Bay Village, North Ridgeville, Elyria, Lorain, Cleveland and surrounding areas, Cuyahoga County, Lorain County, Parma, Strongsville, Medina, Akron, Canton, Summit County, Stark County, Brunswick, North Royalton, Wickliffe, Hinkley, Solon, Mentor, Toledo, Bowling Green, Lucas County, Wood County, Independence, Seven Hills, Garfield, Garfield Heights, Parma Heights, Bedford, Cleveland Heights, Lakewood, Wooster, Wayne County, Beachwood, Sagamore Hills, Lyndhurst, Green, Fairlawn, Montrose, North Canton, Fairport Harbor, Mentor on the Lake, Grand River, Willoughby, Eastlake, Willowick, Euclid, Kirtland, Macedonia, Twinsburg, Hudson, Chesterfield, Chesterland, Maple Heights, Beford Heights, Aurora, Streetsboro, Geagua County, Ashtabula, Jefferson, Rock Creek, Brecksville, Richfield, Litchfield, Mayfield, Mayfield Heights, Highland, Highland Heights, Rocky River, Fairview, Fairview Park, Lodi, Grafton, Brunswick Hills, LaGrange, Alliance, Amherst, Ashland, Mansfield, Beaver Creek, Berea, Middleburg Heights, Brooklyn, Brookpark, Canal Fulton, Warrensville, Trumbell County, Youngstown, Cuyahoga Falls, Olmsted Falls, Mahoning County, Englewood, Warren, Erie County, Vermillion, Sandusky, Port Clinton, Kent, Lebanon, Dover, New Philadelphia, Macedonia, Mansfield, Massilon, Monroe, Wadsworth, Seville, Oberlin, Orville, Norwalk, Painesville, Pepper Pike, Perrysburg, Ravenna, Richmond Heights, Rittman, Riverside, Shaker Heights, Sheffield, Sheffield Lake, South Euclid, Springboro, Steubenville, Stow, Tiffin, Huron County, University Heights, Upper Sandusky, Warrensville Heights, Willoughby Hills, Roaming Shores, Columbus, Cincinnati, Dayton, and many others.

Who Can Benefit From an Payment Option ARM - Self-employed borrowers with inconsistent income
Borrowers with inadequate or no retirement savings
Borrowers who want cash reserves for emergencies
Borrowers who need money to start or expand a business
Borrowers who need mortgage payments to be as small as possible
Borrowers who want to stop using high interest credit cards
Borrowers seeking financial flexibility

The great thing about the Pay Option ARM is that it can benefit most people. Because of its flexiblity, it can be catered to meet the needs and goals of most people. I personally like the Pay Option ARM because it gives me more cash flow on my rental property and I have more money to invest in other properties or investments.

This loan can be great, however, when the market is hot! Often times you can get into an investment property, pay less than the current rent rates, and still gain value in the property. This is a great tool for leveraging cash when trying to buy multiple rental properties. Once the market turns, you can refinance the properties into traditional mortgages and cash out on the refinance to cover any deficiencies between your new mortgage payments and the rent you are collecting.

However, it really needs to be conveyed that this loan is NOT meant for everyone. The PayOption mortgage can have its down falls and if you are not the type of person who is very involved with their finances, you might want to consider a 3/1 or 5/1 Interest only ARM.

The pay option arm is a great alternative for those considering a Reverse Mortgae giving them a much lower payment option.

My estimate would be that in the state of California, somewhere near 70 per cent of homeowners could benefit from an Option ARM loan program. I base this on the fact that monthly cash flow is a problem as evidenced by the high credit card debt that some many households ar carrying.

In an area of high appreciation using an Option Arm on an investment property allowing it to have a positive cash flow while the property is being rented out and selling the rental after a period of time may be an advantageous way to use an Option ARM.

One of the negative effects of this mortgage can be the negative amortization of your mortgage over time. This, in simple terms, is adding debt to your property, and can happen if you always pay the lowest payment, as it is usually 1-3% interest rate. The difference between what your fully amortizing rate is, and this low rate, will be the debt added to your home.

One of the hottest mortgage programs on the market these days is the option arm mortgage. Alternatively you may have heard of option ARMS by the names "Pay Option ARM" "Payment Option ARM" "12 Month MAT" or "Pick-A-Payment Mortgage". And we've discovered that there are at the least 4 compelling reasons why smart and savvy borrowers are flocking to Option ARMS... these pick-a-pay loans give the borrower 4 different payment amounts to choose from every single month.

The First Payment Option is based on a start rate as low as 1%, sometimes even less, depending on your credit and a few other factors. Your Second Payment Option is usually on an interest only choice. Pay Option Three is generally a principal and interest payment choice amortized over 30 or 40 years depending on the program you select. Finally, for those times when you have extra money available and you want to pay down your principal and build equity faster, the fourth choice is a pay option based on the 15 year amortized payment to pricipal and interest. In Summary, an option arm provides you with flexible options every month, which help to manage your cash flow and monthly budget with more control. And you can get a lot more house for your money, or free up that cash flow to start your own business or make investments.

The best way to put a pay option arm mortgage to work for you is to talk with one of our experienced option arm experts who will design a personalized program just for you based on your own individual or your family's goals, income, monthly bills and future housing or investment property plans.

Pay Option ARMs are great for many borrowers. Another common situation is borrowers who own a rental property. The flexibility and minimum payments can be used to maximize cash flow from the property and or to off set additional expenses such as repairs.

Pay Option ARM is also referred to as a Pick a Payment loan. It gives the borrower the option to make one of four payment types every month, (1) minimum payment, (2) interest only payment, (3)payment based on 30 year amortizations, and (4) payment based on 15 year amortizations.