Pay Option Refinance is an increasingly popular strategy amongst borrowers who are currently in Option ARM mortgages. While a limited number of Option ARM borrowers choose to refinance into interest only or fully amortized mortgages, the majority are opting to refinance theiir option payment mortgages into fixed rate cash flow mortgages which possess all of the same payment options as their old option ARMs.
Option refinance should be considered by borrowers who plan on keeping their home for at least 3 years. They may be able to save money going to a conventional Mortgage and avoiding negative amortization.
Fixed Option Refinance loans are an increasingly prudent choice for homeowners who want to protect themselves from unforeseen events. Interruption of income due to unemployment, illness, disability, or family emergency such as a death in the family is the leading cause of foreclosure in the USA. The correlation between income interruption and foreclosure is due to the very low level of savings for our average American household. Not having enough money saved for a "rainy day" can mean missing mortgage payments, and you don't have to miss more than a couple to lose your home. By refinancing into a Fixed Rate Pay Option mortgage, families can protect themselves from temporary emergencies and declines in income due to seasonal or other factors. By having a low minimum payment option available, often half what a normal mortgage payment would be, you and your family can weather the storm more easily. Once your income is restored or the emergency is resolved, you can then return to making an interest only or principal & interest payment.
Typical Pay Option Refinance candidates include business owners and other self employed persons and independent contractors, as well as real estate investors and traditional high net worth individuals and families. By converting their flexible Pay Option mortgages to a Fixed Rate by refinancing, these borrowers are preserving the exceptional flexibility of their pay option mortgages without risking the current volatility in rising adjustable rate mortgages. Choosing a fixed rate option refinance may be for you if you could make use of additional cash flow generated by deferring mortgage interest. If you would like more information on how deferring interest with a fixed rate option refinance mortgage may improve your financial situation, please contact us at 888-418-4467 or send an email including your name and the state in which your property is located to firstname.lastname@example.org
Many Wall Street Executives and Employees who receive large annual bonuses can benefit from a pay option refinance. This is because the mortgage payment can be a lower amount during the year and a lump sum can be applied when one receives their annual bonus.
Pay Option refinance mortgages are often associated with Option ARM mortgages. You can refinance your Pay Option ARM and save a considerable amount of money and secure a long term fixed rate option mortgage and give yourself a great deal of flexibility.